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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/13/2006 ,r\ni'D East Valley ''It::.' " Water District 365'~ HIGHLAND AVE., SUITE #12, HIGHLAND, CA REGULAR BOARD MEETING . june 13,2006 2:00 P.M. AGENDA ----------------------------------------------------------------------- "In order to comply with legal requirements for posting of agenda, only those items filed with the Dis1rict Secretary by 10:00 a.m. on Wednesday prior to the following Tuesday meeting not requiring departmental investigation, will be considered by the Board of Directors". .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. CA~L TO ORDER PUDGE OF ALLEGIANCE .......................... --.... -- --........ --.......................................................... -- ---.... --.. --........ 1. Public Comments 2. Approval of Agenda CONSENT CALENDAR 3. Approval of Public Outreach Committee Meeting Minutes for May 22, 2006 4. Approval of Board Meeting Minutes for May 23,2006 5. Approval of Development Agreement between East Valley Wf1ar District and Williani Lyon Homes, Inc., to subdivide and develop certain real property which will consist of one hundred twenty-one (121) dwelling units located at east of Boulder Avenue, north of 5th Street and west of Orange Street, identified as Tract No. 17682, in the City of Highland, County of San Bernardino, State of California 6. Accounts Payable Disbursements: Accounts Payable Checks 206426 through 206677 were distributed May 18, 2006 through June 7, 2006 in the amount of$I,577,844.92. Payroll Checks for period ended April 30, 2006 and May 26, 2006 and included checks and direct deposits, in the amounts of $5,570.85 and $122,394.16. Total Disbursements for the period were $1,705,809.93 OLD BUSINESS 7. Discussion and Possible action regarding sponsorship levels for the Highland Library & Environmental Learning Center 8. Discussion and Possible action regarding Addendum to East Valley Water District's Design Contract with GMID 9. Headquarters Project Review and Update (General Manager) NEW BUSINESS 10. Discussion and Possible action regarding hosting the Association of the San Bernardino County Special Districts meeting on December 18,2006 11. Discussion regarding Yucaipa Valley Water District's Water, Sewer and Recycled Water Rate Analysis Report 12. Discussion and Possible action regarding East Valley Water District's 2006-2007 Budget 13. Discussion and possible action regarding the scheduling of a Public Hearing for consideration of a water and sewer rate increase 14. Discussion and Possible action regarding official ballot for the Special Districts election for Regular and Alternate LAFCO Members 15. Discussion and Possible action regarding Croydon Risk Consultants analysis of Alternative Insurance Proposals for the District's Commercial and Liability Insurance Program 16. Discussion and Possible action regarding the District's participation and sponsorship levels for the Solar Cup Boat Races at Lake Skinner 17. Review East Valley Water District's Board of Directors' meeting fees and expense allowances 18. Directors' fees and expenses for April 2006 RE,PORTS 19. General Manager I Staff Reports a. Washington Report b. Project Summary 20 Consultant Reports 21 , Committee Reports a. Public Outreach Committee Meeting on May 22, 2006 b. Insurance Committee Meeting on June 5, 2006 22. Oral comments from Board of Directors O)RRESPONDENCE 2, . Letter of appreciation to Bob Martin from' Wilma Silva regarding the District's Santa Ana River Tour on May 19,2006 2 MEI:TINGS 24. Association of the San Bernardino County Special Districts Membership Meeting, sponsored by West Valley Water District, EI Rancho Verde Royal Vista Country Club, Rialto, June 19, 2006 25. San Bernardino Area Chamber of Commerce "Business After Hours Fiesta Party" hosted by 1 sl Valley Credit Union, 401 West 2nd Street, San Bernardino, June 22,2006 CLOSED SESSION 26. CONFERENCE WITH REAL PROPERTY NEGOTIATOR [Government Code Section 54956.8] Property: 27+/- Acres of Vacant Land South of Highland Ave, West of Central Ave San Bernardino County, California APN: 1191-25-01,03,04 Party with whom District will negotiate: San Manuel Band of Mission Indians party who will be negotiating on behalf of the District: Under Negotiation: Robert Martin Price and Terms of Payment 27. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGA TrON [Initiation oflitigation pursuant to Government Code Section 54956.9(c)] One Potential Case M!NOUNCEMENT OF CLOSED SESSION ACTIONS ADJOURN ----------------------------------------------------------------.------ PW'suant to Government Code Section 54954.2(a), any request for a disability-related modification or ac( ommodation, including auxiliary aids or services, that is sought in order to participate in the above- agmdized public meeting should be directed to the District's Administrative Manager at (909) 885- 491 JO at least 24 hours prior to said meeting. --------------------------------------------------------._- , J Subiect to Approval EAST VALLEY WATER DISTRICT _ . PUBLIC OUTREACH COMMITTEE MEETING May 22, 2006 MINUTES The meeting was called to order at 10:02 a.m. by Director Goodin who led the flag salute. PRESENT: Directors: Goodin, Lightfoot, ABSENT: None STAFF: Robert Martin, General Manager; Justine Hendricksen, Administrative Manager; Eileen Bateman, Executive Assistant GUEST (S): None PUBLIC PARTICIPATION There being no verbal or written comments the public participation section was closed. DISCUSSION REGARDING SPONSORSHIP LEVELS FOR THE HIGHLAND .LIBRARY & ENVIRONMENTAL LEARNING CENTER The Committee discussed the possibility of supporting the Environmental Learning Center and deferred this item to the next Board meeting for further discussion due to the lack of representation from the City of Highland. DISCUSSION REGARDING EAST VALLEY WATER DISTRICT FACILITIES & EDISON TOURS The Committee discussed the District's Facility and Edison Tours; that the tours promote public awareness; that each tour should be held once a year. Director Goodin stated that he had attended the Solar-Powered Boat Races sponsored by the Metropolitan Water District, and that High School Students use science to develop solar powered boats. Each High School Team is sponsored by local organizations. Director Goodin requested that this item be added to the next Board agenda. ADJOURN The meeting was adjourned at 10:37 a.m. until the next scheduled Meeting Robert E. Martin, Secretary Kip E. Sturgeon, Board President Subiect to soorovsl EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING May 23, 2006 MINUTES President Sturgeon called the meeting to order at 2:00 p.m. Director Negrete led the flag salute. PRESENT: Directors: Lightfoot, Negrete, Goodin, Sturgeon, Wilson ABSENT: None STAFF: Robett Maltin, General Manager; Ron Buchwald, Assistant District Engineer; Brian Tompkins, Chief Financial Officer; Justine Hendricksen, Administrative Manager LEGAL COUNSEL: Steve Kennedy GUEST(s): 10 McAndrews, Jim Cimino (Cimino Realty), Dennis Barton (City . of Highland), Mary Chip-Baxter (EVWD), Matt Armitage (EVWD), Daniel Davis (EVWD) APPROVAL OF AGENDA Pursuant to Government Code Section, 54954.2(b)(2), the Board determined by a unanimous decision, and at the request of the General Manager, to add the following CLOSED SESSION item(s) to the agenda as the need to take immediate action thereon arose after the agenda was posted: 27. CONFERENCE WITH REAL PROPERTY NEGOTIATOR [Government Code Section 54956.8] Property: 15+/- Acres of Vacant Land APN(s)1192-191-03-0000, 192-191-02-0000 Property Owner with whom the District will negotiate: NedjatolIah Cohen Albert S. Cohan Party who will be negotiating on behalf of the District: Robert E. Martin Jim Cimino Under Negotiation: Price and Terms of Payment Minutes: OS/24/05 28. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section 54956.9(a)] Name of case: Water Rights Application No. 31174 (Santa Ana River) pending before the State Water Resources Control Board MlS/C (Wilson-Negrete) that the May 23, 2006 Agenda be approved with the revisions recommended by the General Manager. PUBLIC PARTICIPATION President Sturgeon declared the public participation section of the meeting open at 2:01 p.m. The General Manager introduced employees from East Valley Water District; Mary Chip- Baxter, Matt Armitage and Daniel Davis. There being no further written or verbal comments, the public participation section was closed. APPROVAL OF APRIL 25, 2006 BOARD MEETING MINUTES MlS/C (Wilson-Lightfoot) that the April 25, 2006 Board Meeting Minutes be approved as submitted. DIRECTOR NEGRETE ABSTAINED FROM THE VOTE APPROVAL OF MAY 16, 2006, SPECIAL BOARD MEETING MINUTES MlS/C (Wilson-Lightfoot) that the May 16, 2006 Special Board Meeting Minutes be approved as submitted. APPROVAL OF DEVELOPMENT AGREEMENT BETWEEN EAST VALLEY WATER DISTRICT AND CF HIGHLAND I, LLC TO SUBDIVIDE AND DEVELOP CERTAIN REAL PROPERTY WHICH WILL CONSIST OF . . TWENTY-SIX (26) DWELLING UNITS LOCATED AT THE SOUTHWEST CORNER OF BASELINE ROAD AND CHURCH STREET, IDENTIFIED AS TRACT NO. 17263 LOCATED IN THE CITY OF HIGHLAND, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, was presented to the Board for approval. MlS/C (Wilson-Lightfoot) that the Development agreement between East Valley Water District and CF Highland I, LLC be approved. RESOLUTION 2006.08 - A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING DEDICATION OF SEWERS ON WATER STREET/VIA DEL DENE, was presented to the Board for approval. 2 Minutes: OS/24/05 M1S/C (Wilson-Lightfoot) that Resolution 2006.08 be approved. RESOLUTION 2006.09 - A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING CONVEYANCE OF PIPELINE EASEMENT FROM TOLL LAND xxn LIMITED PARTNERSHIP FOR TRACT 16914, LOCATED IN THE CITY OF mGHLAND, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, was presented to the Board for approval. . M1S/C (Wilson-Lightfoot) that Resolution 2006.09 be approved. REQUEST FROM THE GENERAL MANAGER FOR BUY-BACK OF V ACA TION TIME M1S/C (Wilson-Lightfoot) that the request from the General Manager to buy-back vacation time be approved. DISBURSEMENTS M1S/C (Wilson-Lightfoot) that General Fund Disbursements #206051 through 206425 distributed during the period of April 25, 2006 through May 17, 2006 in the amount of $1,581,432.11 and Payroll Fund Disbursements for the period ended April 28, 2006 and May 12, 2006 in the amount of $117;387.09 and $126,610.03 totaling $1,825,429.23 be approved. HEADQUARTERS PROJECT REVIEW AND UPDATE The General Manager requested that his report regarding the Headquarters Project be deferred at this time. DISCUSSION AND POSSffiLE ACTION REGARDING AMENDMENT TO THE INTEGRATED MANAGEMENT PROGRAM DEMONSTRATION PROJECT AGREEMENT. The General Manager reviewed the Integrated Management Program Demonstration Project with the Board; that the District entered into the agreement approximately two years ago; that the agreement deals with groundwater spreading and the recharge basin; that last year the District extend the agreement for one year; that capturing native water will improve groundwater levels throughout the basin; that he recommends approval of the amendment to the Integrated Management Program Demonstration Project. M1S/C (Negrete-Goodin) that the Amendment to the Integrated Management Program Demonstration Project Agreement be approved. 3 Minutes: OS/24/05 DISCUSSION AND POSSIBLE ACTION REGARDING THE ALIGNMENT STUDY FOR GREENSPOT ROAD NEAR SEVEN OAKS DAM AND ITS IMP ACT UPON EXISTING DISTRICT PROPERTY The General Manager reviewed the alignment study prepared by CDM with the Board; that the City of Highland had contacted the District regarding their future alignment plans for Greenspot Road; that staff had met with Mr. Barton regarding the City of Highland's proposed alignment for Greenspot Road; that a geotechnical evaluation of the property needs to be performed. Director Negrete asked if there would be any negative impacts to existing District wells if the realignment of Greenspot Road moves forward. The General Manager stated that there would be no impact on the groundwater supply due to the realignment of Greenspot Road. Director Lightfoot would like to know what the estimated cost for a geotechnical study for this project would be. The General Manager stated the cost could be between 10K-30K. Mr. Barton stated that the City of Highland is currently performing biological surveys of the project; that they are presently trapping for the Kangaroo Rat; that they will continue and move forward with the environmental process as needed. Director Lightfoot would like to Imow if the City of Highland would pay for a portion of the geotechnical evaluation. Mr. Barton stated that the City of Highland would provide the District with the findings from their environmental reports. Director Wilson inquired as to the City of Highland's timetable for the project. MlSI (Goodin-Wilson) that the District initiate a complete geotechnical evaluation of said property. Director Goodin amended the motion to included that the geotechnical evaluation not exceed 25K without Board approval. MlS/C (Goodin-Wilson) that the' District initiate a complete geotechnical evaluation of said property and that the geotechnical evaluation not exceed 25K without prior Board approval. DISCUSSION AND POSSIBLE ACTION REGARDING THE DISTRICT'S PARTICIPATION IN THE CITY OF HIGHLAND'S "4TH OF JULY PARADE" ON . JULY 4, 2006 4 Minutes: OS/24/05 M1S/C (Negrete-Lightfoot) that the District participate in the City of Highland's "4th of July Parade" on July 4, 2006. DISCUSSION AND POSSIBLE ACTION REGARDING THE DISTRICT'S PARTICIPATION IN THE CITY. OF SAN BERNARDINO'S ROUTE 66 RENDEZVOUS ON SEPTEMBER 14-17, 2006 President Sturgeon deferred this item to the Public Outreach Committee. The Public Outreach Committee will convene on June 13, 2006 at 1 :30 p.m. to discuss the District's participation in the City of San Bernardino's route 66 Rendezvous, September 14-17,2006. No action taken. REVIEW AND ACCEPT FINANCIAL STATEMENTS FOR PERIOD ENDED APRIL 30, 2006 M1S/C (Wilson-Lightfoot) that the Financial Statements for the period ended April 30, 2006 be accepted. 2005 ANNUAL DRINKING WATER PROGRAM REPORT FOR THE YEAR ENDING 2005 . MlS/C (Negrete-Goodin) that the 2005 Annual Drinking Water Program Report for the year ending 2005 be accepted. DIRECTORS' FEES AND EXPENSES FOR APRIL 2006 MlS/C (Lightfoot-Wilson) that the Directors' fees and expenses for Apri12006 be approved. GENERAL MANAGER 1 STAFF REPORTS The General Manager reported on the District's operations to date; the General Manager commented on the Army Corps of Engineers Appropriation Bill; that the San Bernardino Search and Rescue Team would like to schedule a photo shoot with the Directors; that the debate on groundwater recharge is ongoing and that proposed by the Regional Board regulation has been postponed. The photo shoot has been scheduled for June 25, 2006 at 10:00 a.m. at the rialto Airport. Information Only. CONSULTANTS REPORTS No reports at this time. 5 Minutes: OS/24/05 COMMIITEE REPORTS Customer Service Committee: 1) The committee met and reviewed the request from District employees to close the District offices on July 3, 2006, and use a vacation day to allow for a 4-day weekend. Public Outreach Committee: The Public Outreach Committee met and reviewed the following topics: 1) Levels of support for the Highland Library 2) District Tours ORAL COMMENTS FROM BOARD OF DIRECTORS Director Wilson stated that he recently attended the ACW A conference in Monterey. Director Goodin stated that the Water Resources Institute is currently interviewing potential candidates for the Director's pqsition. President Sturgeon offered his gratitude to staff for theit work at this years ACW A Confl~rence, and the recent District tour; that he recently presented awards to several of the District's poster contest winners. ' There being no further verbal or written comments from the Directors, this section of the meeting was closed. LEITER TO ROBERT E. MARTIN, GENERAL MANAGER OF THE EAST VALLEY WATER DISTRICT FROM RON COATS LETTER OF APPRECIATION FROM DANIEL MARTINEZ REGARDING EXCEPTIONAL CUSTOMER SERVICE HE RECEIVED FROM MICHAEL MOORE LETTER TO THE DISTRICT FROM SUSAN LIEN LONGVILLE REGARDING THE WATER RESOURCES INSTITUTE LIFETIME ACHIEVEMENT AWARD BEING PRESENTED TO CONGRESSMAN JERRY LEWIS, NOVEMBER 4, 2006 PRESIDENT STURGEON REQUESTED A FIVE-MINUTE BREAK AT 2:55 P.M. CLOSED SESSION The Board entered into Closed Session at 2:59 p.m. as provided for in the California Open Meeting Law, Government Code Section 54945.9(a), to discuss the items listed on the Agenda. 6 Minutes: 05/24/05 ADJOURN TO REGULAR SESSION President Sturgeon declared that the meeting adjourn to regular session. ANNOUNCEMENT OF CLOSED SESSION ACTIONS The Board returned to session at 4:02 p.m. The items listed on the Agenda were discussed in closed session with no reportable action being taken. ADJOURN The meeting was adjourned at 4:02 p.m. until the next regularly scheduled Board Meeting on June 13,2006. Kip E. Sturgeon, President Robert E. Martin, Secretary 7 Minutes: OS/24/05 DEVELOPMENT AGREEMENT 1HIS AGREEMENT is made this /sr dayof Jc.!/J E/ ,2'0':"(, by and between EAST \'ALLEY WATER DISTRICT, a public agency (hereinafter "the DISTRICT"), and William Lyon Homes, Inc (hereinafter "the DEVELOPER"). RECITALS A. The DISTRICT is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. B. The DEVELOPER proposes to subdivide and develop certain real property within t le boundaries of the DISTRICT which is located at east of Boulder A venue, north of 5th Street md west of Orange Street, in the City of Highland, County of San Bernardino, State of California, and is generally identified as Tract No. 17682 (hereinafter "the PROPERTY"). A copy of the Tentative Tract Map for the" PROPERTY is attached hereto as Exhibit "An and is incorporated herein by this reference. C. The development of the PROPERTY will consist of 121 dwelling units, and the DEVELOPER desires that the DISTRICT provide domestic sewer service to the PROPERTY. . [be DEVELOPER intends to design and construct the facilities necessary for sewer service to be furnished to the PROPERTY. D. The DISTRICT supplies dome.stic sewer service within the area to be served and ,s the public agency empowered by law to provide such services to the PROPERTY. E. The purpose of this AGREEMENT is to provide the terms and conditions under which the DEVELOPER will design and construct the facilities necessary for the DISTRICT to mpply sewer service to the PROPERTY (hereinafter "the PROJECT"). COVENANTS NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants contained herein, the parties hereto agree as follows: Section 1. DESIGN OF FACILITIES. The DEVELOPER agrees to design the sewer hcilities for the PROPERTY in the following manner and according to the Rules and f'.egulations of the DISTRICT: a. The DISTRICT agrees to provide to the DEVELOPER tentative sewer plans which conform to the requirements of the DISTRICT. t. The DEVELOPER agrees to design the sewer facilities for the PROPERTY in accordance with the DISTRICT'S Standards for Design and Processing of Sewer Plans. The designs shall be submitted to the DISTRICT in a complete form which shall provide sufficient information for review and approval by the DISTRICT in the exercise of its sole discretion. c. The DISTRICT may request certain changes in the plans, which DEVELOPER agrees to incorporate into the plans and specifications for the PROPERTY. d. The DEVELOPER shall furnish the DISTRICT with any and all easements necessary for the construction, operation, maintenance, and repair of any and all sewer facilities to be installed and/or used for the PROJECT. AU easements shall be submitted to the DISTRICT for review and approval by the DISTRICT in the exercise of its sole discretion prior to the DISTRICT'S acceptance of any dedication of the PROJECT facilities under Section 6 of this AGREEMENT. e. The DEVELOPER shall submit all plans, drawings, specifications, and contract documents, for all work to be performed pursuant to this AGREEMENT, to the DISTRICT for review and approval, if acceptable to the DISTRICT. The DISTRICT- agrees to review all such documents in a timely manner and, upon inclusion of all changes thereto requested by the DISTRICT in a manner satisfactory to the DISTRICT, the DISTRICT will provide the DEVELOPER with authorization to proceed. The DEVELOPER shall not proceed 2 with the construction of the PROJECT and any other sewer facilities for use on the PROPERTY until the DISTRICT so authorizes. Section 2. CONSTRUCTION OF FACILITIES. The DEVELOPER agrees to construct the I ROJECT and all other sewer facilities necessary for the PROPERTY in the following manner sllbject to the DISTRICT'S approval: a. The DEVELOPER shall obtain all necessary permits from the (city or county) and all other public or private agencies required for the construction thereof. The PROJECT and the faciliti~s appurtenant thereto shall be constructed at a location determined by the DISTRICT, and shall be relocated by the DISTRICT at the DEVELOPER'S sole expense if such relocation is deemed necessary by the DISTRICT in its sole discretion. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY and all other locations where the work contemplated herein is to be performed. b. All facilities constructed pursuant to this AGREEMENT shall be in accordance with accepted standards and practices in the industry and in compliance with all local, state, and federal laws, rules, and regulations. The DEVELOPER shall be responsible for providing all labor, materials, and equipment necessary to perform the work for the PROJECT, and such work shall be performed in a timely and workmanlike manner by a party or entity acceptable to the DISTRICT. All such facilities shall conform to the DISTRICT'S Standard , . Specifications for the Furnishing of Materials and the Construction of Sewer Pipelines. All costs and liabilities in connection with the design and construction of the PROJECT shall be borne solely by the DEVELOPER. c. The DISTRICT shall inspect and approve all work to be performed under this AGREEMENT. However, any approval by the DISTRICT of such work, or of the designs, speCifications, reports, ancllor materials furnished hereunder, is understood to be conceptual approval only and will not operate to 3 relieve the DEVELOPER or its contractors, consultants, or subcontractors of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or their own willful misconduct. Further, neither the DISTRICT'S review, approval, or acceptance of any of the work or services performed in connection with this AGREEMENT shall be construed as a waiver of any rights hereunder or of any defense or cause of action which the DISTRICT may have arising out of the performance of this AGREEMENT or any previous or subsequent agreements. The D?VELOPER shall cause the facilities constructed under this AGREEMENT to be inspected as required by any and all other public or private agencies. Section 3. DEVELOPER'S COSTS. In addition to all other obligations imposed upon the I: EVELOPER under this AGREEMENT', the DEVELOPER shall be responsible for the payment 0: all of the following: a. The DEVELOPER shall pay to the DISTRICT all, or any portion, of the applicable connection fees for the PROPERTY at the time of application for sewer service therefor. The DISTRICT will provide sewer service only to those specific subdivision lots within the PROPERTY for which payment in full has been made to the DISTRICT. b. The DEVELOPER shall be solely responsible for the payment of all costs, fees, and expenses associated with the construction, inspection, operation, maintenance, repair, and relocation of the PROJECT, including all costs, fees, and expenses incurred for the environmental analysis, engineering, and design of the PROJECT. c. The DEVELOPER shall comply with all rules, regulations, resolutions, and ordinances of the DISTRICT that are currently in place or may hereafter be adopted, and shall pay when due any and all fees, deposits, charges, 4 rates, [illes, penalties, taxes, and/or' assessments that may be levied by the DISTRICT. d. The DEVELOPER hereby consents, and waives any objection, to the exercise of any and all collection remedies that are available to the DISTRICT under the law upon the PROPERTY and/or the person and/or propelty of DEVELOPER and its shareholders and partners. Section 4. SECURITY. a. The DEVELOPER shall provide performance, completion, and/or payment bonds for the PROJECT in the minimum amount of not less than 100 percent of the estimated construction costs containing covenants which are acceptable to the DISTRICT and the (city or county) . b. The DEVELOPER shall provide a maintenance bond for the PROJECT in the amount of 100 percent of the construction cost,' which shall contain covenants which are' satisfactory to the' DISTRICT. Such bond shall , remain in force for at least twelve (12) months from the date of acceptance by the DISTRICT of the dedication of said facilities. c. The DEVELOPER shall also procure and maintain during the performance of this AGREEMENT such policies of insurance, bonds from an acceptable surety, cash deposits, escrow accounts, letters of credit, and other forms of security, in amounts and upon terms deemed sufficient by the DISTRICT in its sole discretion to protect the DISTRICT from any and all exposure to loss and/or liability. Section 5. COSTS FOR OVERSIZING. Pursuant to Section I.e. of this AGREEMENT, the DISTRICT agrees to pay to the DEVELOPER the incremental cost of oversizing any PROJECT facilities greater than ten inches (10") in diameter for sewage collection pipes. The DISTRICT shall determine the amount of the incremental cost of oversizing and the method of payment in the exercise of its sole discretion prior to its acceptance of the PROJECT facilities. 5 Section 6. DEDICATION OF FACILITIES. a. The DEVELOPER shall, upon completion of the construction of all facilities to be installed hereunder to the satisfaction of the DISTRICT, dedicate said facilities to the DISTRICT by a deed of dedication or such other instrument as the DISTRICT may prescribe, and the DISTRICT agrees to accept the dedication thereof by formal action of its Board of Directors. Thereafter, such dedicated facilities shall become and be operated and maintained by the DISTRICT as part of the DISTRICT'S sewer system. The DISTRICT shall not accept dedication of said sewer facilities until all connection fees have been paid unless otherwise allowed under Section 3.a. herein. Section 7. SERVICE RESTRICTIONS. Any obligation on the part of the DISTRICT to provide sewer service to the PROPERTY pursuant to the terms of this AGREEMENT shall be excused in the event that. the performance thereof is interrupted for any of the following reasons: riots, .wars, sabotage, civil disturbances, insurrection, explosion:, court order, natural disasters such as floods, earthquakes, landslides and fires, and other labor disturbances and other catastrophic events which are 'beyond the reasonable control the DISTRICT. Notwithstanding any other provision to the contrary, the DISTRICT may suspect or refuse sewer service to the PROPERTY if the DEVELOPER is in breach, default, or violation of this AGREEMENT or any rule, regulation, resolution, and/or ordinance of the DISTRICT that is currently in place or may hereafter be adopted, or if such service would adversely affect the health, safety, or welfare of the DISTRICT'S customers, or Jor .any other reason deemed paramount by the DISTRICT in its sole discretion. Section 8. LIABILITY FOR DAMAGES. The DISTRICT shall not be held liable or :esponsible for any debts or claims that may arise from the operation of this AGREEMENT, or for any damage claims for injury to persons, inciuding the DEVELOPER and/or its officers, 6 d:rectors, shareholders, guests, invitees, trespassers, agents, contractors, consultants, and employees, or for property damage, from any cause arising out of or in any way related to the PROPERTY, the PROJECT, and/or the DEVELOPER'S obligations hereunder. Section 9. RELEASE. The DEVELOPER hereby expressly waives and releases the r: ISTRICT and its agents, officers, directors, and employees from any and all liability for the caims, actions, and/or losses set forth in Section '9 above and for any costs and expenses incurred in connection therewith. The DEVELOPER, notwithstanding the provisions of California Civil Code ~ 1542, which provides as follows: "A general release does not extend to claims which the creditor did not know or suspect to exist in his or her favor at the time of the executed release which if known by him or her must have materially affected his or her settlement with the debtor." expressly waives. arid relinquishes all rights and benefits afforded to the DEVELOPER t lereunder and under any and all similar laws of .any state or territory of the United States with , r~spect to the claims, actions, and/or losses referenced above. This AGREEMENT shall act as a release of any claims that may arise from the aforementioned whether such claims are currently Inown or unknown. The DEVELOPER understands and acknowledges the significance and consequences such specific waiver of Civil Code ~ 1542 and hereby assumes full responsibility for any injuries, damages, losses, or liability that may result from the claims identified above. This AGREEMENT shall also act as a release of any claims, actions, and/or losses set forth in ,)ection 9 above, that may arise in the future whether such claims are currently foreseen or mforeseen. Section 10. HOLD HARMLESS. Excepting the sole or active negligence or willful nisconduct of the DISTRICT, the DEVELOPER shall indemnify and hold the DISTRICT and its officers, directors, agents, and employees harmless from and against all claims and liabilities 0f any kind arising out of, in connection with, or resulting from, any and all acts or omissions on the part of the DEVELOPER and/or its officers, directors, shareholders, partners, assignees, 7 Euests, invitees, trespassers, agents, contractors, consultants, and employees in connection with tIe PROPERTY, the PROJECT, and the performance of their obligations under this AGREEMENT, including design defects, even if occurring after the completion of the PROJECT, and defend the DISTRICT and its officers, directors, agents, and employees from any wits or actions at law or in equity for damages, and pay all court costs and counsel fees in wnnection therewith. In addition, the DEVELOPER agrees to defend, indemnify, and hold the DISTRICT harmless from and against all claims, losses, liabilities, damages, demands, actions, judgments, causes of action, assessments, penalties, costs, expenses (including, without limitation, the reasonable fees and disbursements of legal counsel, expert witnesses, and accountants), and all foreseeable and unforeseeable consequential damages which might arise or he asserted against the DISTRICT and/or the DEVELOPER with regard to the PROPERTY ;Uld/or the PROJECT which are alleged and/or determined to be tortious, and/or in violation of present and future federal, state, and local laws "(whether under common law, statute, rule, regulation, or otherwise), including, but not limited to, the California Environmental Quality Act, :'ublic Resources Code Section 21000 et seq., and the Guidelines adopted thereunder, California :ode of Regulations Section 15000 et seq., all as the same may be amended from time to time. Section 11. NOTICES. Any notice, tender, or delivery to be given hereunder by either party to the other shall be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and shall be deemed communicated as of mailing or in the case of personal delivery, as of actual receipt. Mailed notices shall be addressed as set forth below, but each party may change * address by written notice in accordance with this section. If to the DISTRICT: East Valley Water District P.O. Box 3427 1155 Del Rosa Avenue San Bernardino, CA 92413 Attn: General Manager If to the DEVELOPER: 8 Attn: Section 12. DISPUTES. Any dispute or controversy arising out of, under, or in connection with, or in relation to this AGREEMENT, and any amendments thereto, or the breach thereof, which is not resolved informally by prior mutual agreement of the parties hereto, shall be S'lbmitted to arbitration in accordance with the California Arbitration Act, Sections 1280 through 1 Z94.2 of the Code of Civil Procedure. The cost 'of such arbitration shall be paid by the parties e ~ually; however, the prevailing party in the arbitration shall be entitled to reimbursement of its a:tomeys fees and other costs incurred in connection therewith. Section 13. ATTORNEYS FEES. If a dispute arises which cannot be resolved by arbitration, regarding the breach or enforcement of the provisions of this AGREEMENT, the prevailing party therein. shall be entitled to recover all attorneys fees and other costs actually incurred in connection with reaching a resolution of the dispute whether or not an action, claim, or lawsuit is filed. In any action brou~t, t:J:ie entitlement to recover attorneys fees and costs will be considered an element of costs and not of damages. Seetion 14. INUREMENT. This AGREEMENT and all provisions hereof shall be jointly aad severally binding upon, and inure to the benefit of, the parties hereto. their respective heirs, s Ilccessors, legal representatives, and assigns, and each of the shareholders and partners of the DEVELOPER in their individual, separate, and/or other capacities. Section 15. ASSIGNMENT. This AGREEMENT may not be assigned to any individual or entity without the written consent of the parties hereto. Section 16. INTEGRATION AND AMENDMENT. This AGREEMENT constitutes the mtire understanding of the parties hereto with respect to the subject matter hereof and supersedes my and all prior agreements, whether oral' or written, between the parties in connection t1erewith. This AGREEMENT may not be amended unless in writing and signed by the parties lereto. 9 Section 17. CAPTIONS. The captions of sections and subsections of this AGREEMENT a:'e for reference only and are not to be construed in any way as a part of this AGREEMENT. Section 18. INTERPRETATION AND ENFORCEMENT. This AGREEMENT shall not be construed against the party preparing it, but shall be construed as if both parties jointly prepared this AGREEMENT and any uncertainty or ambiguity contained herein shall not be interpreted against anyone party. Failure by either party to enforce any provision of this J.GREEMENT, or any waiver thereof by such party, shall not constitute a waiver of said party's rght to enforce subsequent violations of the same or any other terms or conditions herein. This j,GREEMENT shall be enforced and governed by and under the laws of the State of California, and venue for any action brought to interpret and/or enforce any provision of this AGREEMENT shall be in a state or federal court located in the State of California that would generally have in rem jurisdiction over the PROPERTY. Section 19. SEVERABILITY. If any portion of 'this AGREEMENT is declared by a court (,f competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions of this AGREEMENT shall continue in full force and effect. Section 20, TIME OF THE ESSENCE. Time is of the essence in this AGREEMENT, and t he parties hereto agree to proceed in good faith: with due diligence, to complete all covenants ,md conditions set forth herein and to perform such further acts as is reasonably necessary to f:ffectuate the purpose of this AGREEMENT, Section 21. AUTHORITY. Each individual executing this AGREEMENT on behalf of a :)arty hereto represents and warrants that he or she is fully and duly authorized and empowered to ;0 execute on behalf of such party, and that this AGREEMENT is binding in the manner set forth n Section 15 hereof. 10 IN WITNESS WHEREOF, the parties .hereto have caused this AGREEMENT to be e;~ecuted by their respective officers as of the date first above written. DISTRICT By: East Valley Water District President, Board of Directors JlTTEST: Secretary DEVELOPER: ") ,v /,- " /0/. r. hTTEST: Notary Public 11 C~ALlFORNIA ALL.PURPOSE ACKNOWLEDGMENT }~~~~~~~~~~'1f....~~.c,l!!(.'~~~~,)'!C~~ mate of California County of ;ell f ;?S J ;0 €--- UU/../f- /, 206/ Date " f,ersonally appeared before me, ;fe-4 ;lJ } ss. " vE/j/J / I( c;;;,i:'c:?f ~ U On b Nam{~1 :11)J ~Jane Doe, Notart Pubnci Name(s) of Signer(s) ~nallY known to me Q_ JENNI K. GARCEAU - COMM. #1547409 i NOTARY PUBLIC. CAliFORNIA . ' RIVERSIDE COUNTY j ~ My Comm. Expires Jan. 27.2009 1 o proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Place Notary Seal Abo.... 1~NysS my hand and o,ffic'al 0-~---~ OPTIONAL Though the informatIon below is not required by law, it may prove valuable to persons relying on the dOCUm?nt and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document / litle or-~Document: ./ Document Date~ Number of pages:/"// Signer(s) Other Than Na~ ,/. Capacity(les) Claimed by Signer(s) Signer's Name: o Individual o Corporate Officer - litle(s): o Partner - 0 Limited 0 General o Attorney in Fact o Trustee o Guardian or Conservator o Other: RlGHT1HUM8PR1NT OF SIGNER Top ot thumb here / // / -' /' ~/ Signer's Nam6: / o Individual ,orporate Officer - Title(s): l'at!.ner - 0 Limited 0 General , 0 Attoi'rrey, in Fact o Trustee ~ o Guardian or Cb..",ervator o Other: ,_ ""'- "'" RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer Is Representing: Signer Is Representing: ", -' /' -' ./ EXlllBIT "A" [Site Plan for the PROPERTY] 12 ! "I 1'1 Ii l I / ./' / ,/ / // /' "'111 Hi I' ~i ".l+r- ,.;;t1.Il: , l-;I,n:::J Eioo.. !',;!:!:!\. (i?;o ;"ln3 G) () r 0 ,m z '2 0 ~:c "03 ~05~ ~(J)-i~ ~m"'Dc , >'" l:Dzm :):> ril I. '2 :c II ~ ~ I- I. '\,) ij;l\)i L: ' /'11111 iil'~ r, I I II ,i II I . I I i; !--L :1 ~~ ,- ~ --"'1 i I , I I I 1'1 ! !' I " ~! ~ll , I I I' q ~I 1- I I - - / nn~\ 'i' \' 11,\ l~ "... t~,l" ~ ~.' +If'- l! t~ i -e:.s: , ~~ ~ t36. !HC!~ .- ,CllO ~.~. i.~3 i; .4 ~, G)f" .- r~ n rnz :4 ~ .- S!.::C ~ $O<n Z (j) (- ~rn';; " 0 ~:D:s 11 ):> '!l .zo z o,~ \ :I:>j; d "- \ 1. c..>l;lt'V"' \ i ' -- \ \i '\ i ,.f / "/ ./' ,/,/ //,1/ / ~ , -7 . P' .''/.''':;" \ \ I \ Ii .\ i\ ,- " I I \\ I ~ t . , ) I \ \ ~ ~ --- ,\'; , \ . , \ , \ l ~l \ It 1.\ h ~f d ~\\ I'j l \ \ ~r\ni'D East Valley t:.' " Water District Board Memorandum DATE: JUNE 13, 2006 Frc m: Brian W. Tompkins 1 Chief Fin~Officer Subject: Disbursements. pi Re.=ommendation: Approve the attached list of accounts payable checks' and payroll issued during the period May 18, 2006 through Jure 7, 2006. Background: Acc:ounts payable checks are shown on the attached listing and include numbers 206426 to 206677 for A tlltal of $1,57'7,844.92. . Thll source of funds for this amount is as follows: . Co lstruction Fund - Loan $118,546.60 Un 'estricted Funds $1,459,298.32 Pa/roll disbursed was for the period ended May 26, 2006 and included checks and direct deposits totaling $122,394.16. Directors payroll disbursed was for the period ended April 30, 2006 and included checks and deposits totiling $5570.85. Total disbursements $1,705,809.93 Date: Wednesday, June 07, 2006 East Valley Water District Page: 10f 5 Time: , l3:39PM Report: 20600.rpt User: <ATHY Check ReQlster - Standard Company: EVWD As of: 6/7/2006 Bank Ace ::lunt: Citizens Business Bank 13110 00-00-000-0-000-00-00 Check JI Tn Check Payee Clear Period Nbr Tp Tp Date ID Payee Name Date Post Amount 000001 - 206425 Missing 206426 AP CK 5/1812006 SOC005 SOUTHERN CALIFORNIA EDI 5/22/2006 11-05 1.522.53 206427 AP CK 5/19/2006 TUR007 TURNER-MARY 5/2312006 11-05 225.00 206428 AP CK 5/2312006 HIG007 HIGHLAND AREA CHAMBER 6/1/2006 11-05 30.00 206429 AP CK 5/24/2006 AAR002 AARON GRAPHICS LLC 61212006 11-05 47.05 206430 AP CK 5/24/2006 ACB001 A.C.BYERS TRUCKING INC 11-05 3,187.00 206430 AP VC 6/212006 ACB001 A.C.BYERS TRUCKING INC 12-05 -3,187.00 206431 AP CK 5/24/2006 ADP002 ADP 61212006 11-05 413.93 206432 AP CK 5/24/2006 AIR005 AIRGAS WEST 5/30/2006 11-05 118.31 206433 AP CK 5/24/2006 AME001 AMERICAN EXPRESS 5/30/2006 11-05 4,54 206434 AP CK 5/24/2006 A TT007 AT&T 5/31/2006 11-05 83S.84 206435 AP CK 5/24/2006 AWAOO4 AWAD-A!-iLAM 11-05 21.93 208436 AP CK 5/24/2006 BA T002 BATTEEN-JOHN W 5/30/2006 11-05 1 ,883.34 208437 AP CK 5/24/2006 BOOO09 BOOKMAN-DENNIS 11-05 24.92 208438 AP CK 5/24/2006 BOSOO4 BOSTICK-VALERIE B 6/1/2006 11-05 42.52 208439 AP CK 5/24/2006 BRI009 BRITHINEE ELECTRIC 5/30/2006 11-OS 2.122.02 206440 AP CK 5/24/2006 CHA066 CHAMP III-ROBERT T 6/212006 11-05 20.44 208441 AP CK 5/24/2006 CHE007 CHEM-TECH INTERNATIONA 6/5/2006 11-05 2,197.36 206442 AP CK 5/24/2006 CHE01S J CHENG, C CHENG, C LAU,. 6/5/2006 11-0S 800.00 206443 AP CK 5/24/2006 CLlO03 CLIFFORD L UTLEY 61212006 11-05 375.00 206444 AP CK 5/24/2006 COH004 COHEN-ALBERT 6/5/2006 11-05 2,600.00 206445 AP CK 5/24/2006 COL001 COLTON TRUCK SUPPLY 5/31/2006 11-05 22.15 206446 AP CK 5/24/2006 CON029 CONTRERAS-NOE A 11.0S 40.20 208447 AP CK 5/24/2006 DAI001 CAlLY JOURNAL CORPORAT 5/31/2006 11-05 . 57.60 208446 . AP CK 5/24/2006 DEOO01 DE ORO PROPERTIES 6/1/2006 11-OS 29.01 20844S AP CK 5/24/2006 DIA001 DIAMOND FENCE CO 5/31/2006 11-0S ,290.00 20845C AP CK 5/24/2006 DIB001 DIB'S SAFE & LOCK SERVICI 11-05 770.41 206451 AP CK 5/24/2006 DIE007 [}IETER1CH-POST 6/1/2006 11-05 50.00 206452 AP CK 5/24/2006 DON001 DONEGAN TREE SERVICE 6/5/2006 11-05 1,105.00 20845, AP CK 5/24/2006 DOW007 DOWDY-ROBERT 6/6/2006 11-05 30.41 206454 AP ZC 5/24/2006 ECF001 CONSTRUCTION-ECF 5/24/2006 11-05 0.00 20845~ AP CK 5/24/2006 EKE001 EKE-EUCHARIA & CLlFFOR[ 11.05 274.08 206451 AP CK 5/24/2006 ENG001 ENGINEERING RESOURCES 11-05 9,301.00 20645, AP CK 5/24/2006 ESB001 E.S. BABCOCK & SONS, INC 5/30/2006 11-05 2,460.00 206451 - 206459 Missing 20646( I AP CK 5/24/2006 FAR001 FARMER BROS COFFEE 11-05 348.60 20546 AP CK 5/24/2006 FED001 FEDERAL EXPRESS 5/31/2006 11-05 60.82 20646: ' AP CK 5/24/2006 FED004 FEDEX FREIGHT WEST, INC. 5/31/2006 11-05 S1.59 20646: I AP CK 5/24/2006 FL0024 FLORES-JUAN 6/5/2006 11-05 103.24 20646. I AP CK 5/24/2006 FUE003 FUENTE-DENNIS DE LA 11-05 95.70 20846 ; AP CK 5/24/2006 GAB001 GABRIEL EQUIPMENT CO 5/31/2006 11-0S 353.30 20646, ; AP CK 5/24/2006 GEN007 GENUINE PARTS COMPANY 5/30/2006 11-05 20.95 20646 ' AP CK 5/24/2006 GEN011 GENIE-ERNIE 5/31/2006 11-0S 48.90 206461 AP CK 5/24/2006 GOL002 GOLDEN WEST TIRE 6/2/2006 11-05 173.72 20646l AP CK 5/24/2006 GON056 GONZALES-GILBERT 6/212006 11-05 58.43 20647 ) AP CK 5/24/2006 GRA041 GRAHAM-DlON 6/6/2006 11.05 159,34 206471 AP CK 5/24/2006 HAR009 HARPER AND ASSOCIATES, 11-05 4.228.75 206472 AP CK 5/24/2006 HEROn HERNANDEZ-RUDY 11-05 30.72 206473 AP CK 5/24/2006 HIC002 HICKS - RICHARDSON ASSO 11-05 4.000.00 20647\ AP CK 5/24/2006 HIW001 HI WAY SAFETY 6/1/2006 11-05 545.00 20647; AP CK 5/24/2006 HON003 HONEYFIELD-JAY CARL 11-0S 533.36 206475 AP CK S/24/2006 HUB001 HUB CONSTRUCTION SPECI 5/31/2006 11-05 1.293.62 206477 AP CK 5/24/2006 HYD001 HYDRO-SCAPE PROD. INC. 5/31/2006 11-05 918.39 206478 AP CK 5/24/2006 INL004 INLAND DESERT SECURITY 5/31/2006 11-05 373.35 206479 AP CK 5/24/2006 INL005 INLAND WATER WORKS SUI 5/31/2006 11.05 5,255.48 206410 AP CK 5/24/2006 INT003 INTERNATIONAL RUBBER & 6/2/2006 11.05 78,15 206411 AP CK S/24/2006 JOY002 JOYCE CLEI',NERS 6/5/2006 11-05 12,87 206412 AP CK 5/24/2006 KIR007 KIRSCHNER-EDWARD 5/31/2006 11.05 72,94 Date: Wednesday, June 07,2006 East Valley Water District Page: 2 of S TIme: 03:39PM Report: 20600,lpl User: KATHY Check Rellister - Standard Company: EVWD As of: 6nt2l106 Bank Ac count: Citizens Business Bank 13110 00-00-000-0-000-00-00 Check JI Tn Check Payee Clear Period Nbr Tp Tp Date 10 Payee Name Date Post A.mount 20648, AP CK 5/24/2008 LAW002 LAW PLUMBING CO 6/2/2006 11.05 1,875.00 206484 AP CK 5/24/2006 LAW003 LAWSOI'-I PRODUCTS,INC 5/30/2006 11-05 1.137.11 20648, AP CK 5/24/2006 LES002 LESLIE'S POOL SUPPLIES, II 6/512006 11-0S 83.90 20648€ AP CK S/24/2006 LEW013 LEWIS-GEORGE 6/2/2006 11.0S 30.01 206487 AP CK 5/24/2006 LOP039 LOPEZ-FRANK 11-OS 10.22 20648€ AP CK 5124/2006 MA Y008 MAYO-TAUNYA 11.0S lS.81 20648\ AP CK S/24/2006 MCC001 MC CRAY ENTERPRISES 6/5/2006 11-0S 1,262.12 20649C AP CK 5/24/2006 MCMOO2 MCMASTER-CARR 6/1/2006 11-0S 1,701.74 206491 AP CK 5124/2006 MILOOl MILOBEDZKI-JACEK 5/31/2006 11-05 1,600.00 20649~ AP CK 5/24/2006 MWH002 MWH LABORATORIES 5/31/2006 11.05 220.00 20649, AP CK 5/24/2006 I'-IAF002 I'-IAFZGAR- TERRY 11-0S 3.54 20649A AP CK 5/24/2006 NOR023 NORTH AMERICAN RESIDEN 11-0S 23.69 20649, AP CK S/24/2006 OFF007 OFFICETEAM 6/1/2006 11-0S 2,362.40 20649f AP CK 5/24/2006 OTT002 OTTWAY-ALICIA 11.0S 42.84 206497 AP CK 5/24/2006 PAC010 PACIFIC TITAN INC. 5/31/2006 11-OS IS,467.20 20649E AP CK 5/24/2006 PAC032 LANDSCAPE-PACIFIC SOUT 6/2/2006 11-0S 1,633.17 20649E AP CK 5/24/2006 PHI007 II'-IC-PHIPPS & BIRD 6/2/2006 11.0S 54.73 206S0C AP CK 5/24/2006 RAl004 RAINBOW BOLT & SUPPLY II 6/1/2006 11.0S 27.54 206S01 AP CK 5/2412006 RAM037 RAMSEY BACKFLOW & PLU 5131/2006 11-OS 2,532.00 206S02 AP CK 5/24/2006 RAMOSS RAMIREZ-RUBISEL 11-0S 39.7S 206S03 AP CK S/24/2006 ROBOOl ROBERTS SERVICES INC 6/1/2006 11-0S 500.00 208S04 AP CK 5/24/2006 ROB006 ROBERTSOI'-l READY MIX 5/31/2006 11-OS 9,643.90 206S05 AP CK 5/2412006 ROQ001 ROQUET PAVING 6/1/2006 11-05 19.694.00 206506 AP CK. S/24/2006 ROS030 ROSALES-CYNTHIA 6/S/2006 11-OS 58,43 206507 AP CK 5124/2008 SAN203 SANTOS COY-GUADALUPE 11-05 3.35 206S08 AP CK 5/24/2006 SHY001 SHYPTYCKI-RAYMOND 5/31/2006 '11-05 3.832.50 206509 AP CK 5/24/2008 SOC002 SO CAL GAS COMPANY 6/1/2006 1H5 81.12 206S10 AP CK. 5124/2006 SOC003 SO CAL PUMP & WELL SERy 5/30/2006 '11-05 19,402.26 206511 AP CK 5/2412006 SOC004 SO CAL EDISON COMPANY 5/31/2006 11-05 109,994.88 206S12 AP CK 5/24/2008 ST A003 STATE OF CALIFORNIA 611/2006 11-05 24,996.65 206513 AP CK 5/24/2006 ST A054 HOMES-STANDARD PACIFIC 11-05 337.12 206514 AP CK 5/24/2008 SUN008 SUNSHINE PROPERTIES 6/212006 11-05 93.99 20651S AP CK 5/24/2006 TH0033 THORNBURGH-FRITZ 6/1/2006 11-oS 44.30 206S16 AP CK 5124/2006 TRE014 TRE8()R COMPANY-THE 6/1/2006 lHS 640.00 206S17 AP CK 5/2412008 T51002 INVESTMENT5-T & 5 6/2/2006 11-OS 76.67 206518 AP CK 5/24/2006 UNI002 UNITED PARCEL SERVICE 5131/2006 11-05 16.00 206519 AP CK 5/24/2006 USP006 U.S. PIPE & FOUNDRY CO 11-0S 40,633.46 206S20 AP CK S/24/2006 VER004 VERIZON 5/31/2006 11-05 248.69 206521 AP CK 5/24/2006 VULOOl VULCAN MATERIALS COMP~ 5130/2006 11-OS 825.82 206522 AP CK 5/24/2006 WAXOOl WAXIE SANITARY SUPPLY 5/31/2006 11-05 527.96 206S23 AP CK 5/24/2006 YOU024 YOU-YONG HYE 11-05 7.44 206524 AP CK 5124/2006 ZEEOOl ZEE MEDICAL SERVICE # 6/512006 11-05 S7.11 206S25 AP CK 5/24/2006 ETEOOl ETEHAD LLC, REFOUA LLC 6/5/2006 11-05 400.00 206S2€ AP CK 5124/2006 FAI002 FAIRVIEW FORO SALES,INC 6/1/2006 11-0S 113.49 206527 AP CK 5/24/2006 CAL002 CALIF MUNICIPAL UTILITIES 11-05 3.081.20 206528 AP CK 5/24/2006 KEN017 WILLARD L KENLEY 6/2/2006 11-05 2S.00 206529 AP CK 6/2/2006 ARR009 ARROWHEAD UNITED WAY 12-05 60.00 206530 AP CK 6/2/2006 ART005 ARTHUR-LARRY 12-05 63.18 206531 AP CK 6/212006 A TT007 AT&T 12-05 302.16 206532 AP CK 6/212006 A V A005 AVAYA FINANICIAL SERVICE 12.05 2.559.88 206533 AP CK 6/2/2006 BAK006 BAKERSFIELD WELL & PUM! 12-05 355,950.18 206S34 AP CK 6/2/2006 BAR024 BARR LUMBER CO INC 12-0S 119.39 206535 AP CK 6/2/2006 BA T002 BATTEEN-JOHN W 6/6/2006 12-05 490.00 206536 AP CK 6/2/2006 BMIOOl PROPERTIES-BMI 12-0S 24.10 206537 AP CK 6/2/2006 BOA001 BOARD OF WATER COMMI5: 12-05 632.00 206536 AP CK 6/2/2006 BUR022 BURGESS MOVING & STOR!' 12-05 555.66 206539 AP CK 612/2006 CAB010 CABRAL-STt=PHANIE V 12-05 62,98 206540 AP CK 6/2/2006 CAL083 CALIA-JOHN 12-05 48,32 Date: Wednesday, June 07, 2006 East Valley Water District Page: 3 of 5 Time: ( 3:39PM Report: 20600.rpl User: I:A THY Check Re"lsler . Standard Company: EVWD As of: 61712006 Bank Acct lunt Citizens Business Bank 13110 00-00-000.0-000-00-00 - Check JI Tn Check Payee Clear Period Nbr Tp Tp Date 10 Payee Name Oate Post Amount - CAMP DRESSER & MCKEE It 6/612006 12-0S 54,636.21 206541 AP CK 6/2/2006 CAM004 206542 AP CK 6/2/2006 CENOOl CENTEX HOMES 12-05 104.80 206543 AP CK 6/2/2006 CIT018 CITISTREET 12-05 7,982.50 206544 AP CK 61212006 COU024 COURT TRUSTEE 6/6/2006 12-05 410.00 206545 M' CK 6/2/2006 DIBool DIB'S SAFE & LOCK SERVICI 12-05 7.6S 206546 AP CK 61212006 DUR009 DURAN-NESTOR 12-05 1.28 206547 AP CK 6/2/2006 EKEOOl EKE-EUCHARIA & CLlFFOR[ 12-05 242.93 206548 M' CK 6/2/2006 EPAOOl ePARTNERS INC 12-05 41.25 206549 M' CK 6/2/2006 ESBOOl E.S. BABCOCK & SONS, INC 6/612006 12-05 3.465.00 206550 AP CK 6/2/2006 ESP015 ESPIN'OZA-E'STHER 12-05 5.68 2065S1 AP CK 6/2/2006 FER009 FERGUSON ENTERPRISES I 6/6/2006 12-05 541.88 206552 M' CK 6/2/2006 FOXOOl FOX-JANA 12-05 348.55 206553 AP CK 6/2/2008 FRAOOl FRANCHISE TAX BOARD 12-05 77.10 206554 AP CK 6/2/2006 GAR07S GARCIA-MARIA 12.05 32.00 206555 M' CK 61212006 GOIOOl GOINS JANITORIAL SERVICE 12-05 2,135.00 206556 M' CK 6/2/2006 HAR004 HARRINGTON" INDUSTRIAL F 12-05 19.45 206557 AP CK 6/2/2006 HAR060 HARMON-DAVID 12-05 43.14 206558 AP CK 6/2/2006 HEN002 HENDERSON-MICHAEL R 6/212006 12-05 105.00 206559 M' CK 6/2/2006 HER078 HERNANDEZ-JENNY 12-0S 30.65 206560 M' CK 6/212006 HIGOOS HIGHLAND COMMUNITY NEV 6/612006 12-0S 35.00 206561 AP CK 6/2/2006 HIG018 HIGHLANDS STAR CENTER, 12-05 10,304.00 206562 AP CK 6/212006 HUG007 HUGHES SUPPLY CA. LLC 12-05 917.78 206563 M' CK 6/212006 HUROOl HURT-GERALD E 6/612006 12-05 1,824.00 206564 AP CK 6/2/2006 INL005 - INLAND WATER WORKS SUI 6/6/2006 12-05 39,067.13 20656S AP CK 6/2/2006 JAR005 JARAMILLO-MICHAEL 6/512006 12-05 161.19 206566 AP CK 61212006 JOY002 JOYCE CLEANERS 12-05 16.83 206567 AP CK 6/212006 LEW005 LEWIS-KENT 6/612006 12-05 58.56 206568 . AP CK 61212006 LOM006 LOMA LINDA UNIVERSITY 6/512006 12-05 1,380.00 206569 AP CK 61212006 LON012 LONG-CINDY 12-05 40.70 206570 M' CK 6/2/2006 L Y004 L Y-LOAN T 12-05 32.21 206571 AP CK 6/2/2006 MAK003 MAKNOJIA-ALEXANDER 12-05 202.07 206572 AP CK 6/212006 MAL021 MALKIN-WILLIAM 12-05 12.99 206S73 AP CK 61212006 MAR005 MARTIN-ROBERT E 6/5/2006 12-05 39,90 206574 AP CK 6/212006 MARl 01 MARTORELL-ALBERTA 12-05 9.82 206575 AP CK 6/2/2006 MCAOOl MC ANDREWS & BOYD 6/612006 12-05 11,402.76 206576 M' CK 61212006 MCM002 MCMASTER-CARR 12.05 369.70 206577 AP CK 6/212006 MET002 METROPOLITAN LIFE INS CC 12-05 409.59 206578 AP CK 61212006 MILOOl MILOBEDZKI-JACEK 12-05 1.600.00 206579 AP CK 6/2/2006 MOR062 MORENO-GERALDINE 12-05 65,51 206580 AP CK 6/212006 MWH002 MWH LABORATORIES 6/6/2006 12-05 220.00 206581 AP CK 6/2/2006 NET005 NETCOMP TECHNOLOGIES. 6/6/2006 12-05 180.00 206582 AP CK 6/2/2006 NEXOOl NEXTEL COMMUNICATIONS 12-05 967.85 206583 M' CK 61212006 NHSOOl N:H.S. OF INLAND EMPIRE 12-05 19.24 206584 AP CK 6/212006 NOR023 NORTH AMERICAN RESIDEN 12-05 110.99 206581 AP CK 6/212006 OAKOOl MGT-OAK PROJECT 12-05 84.49 20658E AP CK 6/212006 OFF007 OFFICETEAM 6/6/2006 12-0S 3.382,40 206587 AP CK 6/2/2006 OLlOOl OLIVE-KENNETH 6/6/2006 12-05 294.92 20658E AP CK 6/212006 P AS003 JR-ERNESTO PASION 12-05 58.94 20658~ AP CK 6/2/2006 PAT005 PATTERSON-ROY 12-05 3S0.00 20659( AP CK 6/212006 PER006 P.E.R.S. 6/6/2006 12-05 36,258,39 20659' AP CK 6/212006 PER065 PEREZ-EUSTOLIA 12-05 46.83 20659; AP CK 6/212006 PHA014 PHAM-MINH 12-0S 87,31 20659: AP CK 6/212006 PHOOOl PHOENIX HOME LIFE 12.05 213,04 20659' AP CK 6/212006 POU004 POULAN_NOVENA 12-05 13.56 20659~ ' AP CK 6/212006 PRI020 PRINCETON eCOM CORP OR 12.05 77,80 206591- AP CK 6/212006 REY023 REYES-LORENZO L 12.05 38.66 20659" AP CK 6/212006 REY028 REYES-ENRIQUE 12-05 29,43 2065911 AP CK 6/212006 SAFOOl SAFETY KLEEN CORP 6/6/2006 12.05 171.40 Date: Wednesday, June 07, 2006 East VaHey Water District Page: 4 of 5 Time: 03:39PM Report: 20600.rpl User: KATHV Check ReQlster - Standard Company: EVWD As of: 6/7/2006 Bank Ac count Citizens Business Bank 13110 00-00-000-0-000-00-00 Check JI Tn Check Payee Clear Period Nbr Tp Tp Date 10 Payee Name Date Post Amount - COMPANY-SAFETY COMPLl 12-05 250.00 20659f AP CK 6/212006 SAF005 20660C AP CK 61212006 SAN002 SAN BERNARDINO CHILD Sl 12-05 269.00 206601 AP CK 61212006 SAN007 SAN BDNO PUBLIC EMPLOYI 12-05 475.74 20660, AP CK 6/212006 SAN021 SAN BERNARDINO VALLEY \ 12-05 3.139.02 20660: AP CK 61212006 SEV001 SEVERSON-RON 6/6/2006 12.05 190.92 20660' AP CK 6/212006 SHY001 SHYPTYCKI-RAYMOND 6/6/2006 12-05 4,410.00 20660~ AP CK 6/212006 SOW002 SOWLE-TAMI REDPATH 12-05 250.00 20660{ M> CK 6/212006 STA054 HElMES-STANDARD PACIFIC 12.05 256.67 20660, M> CK 61212006 TEA005 TEAT-LARRY 12-05 23.08 206601, AP CK 6/212006 TOM001 TOM DODSON & ASSOCIATE 12-05 8S0.00 20660! ' AP CK 61212006 TOR012 TORRES-EVA 12-05 61.43 20661l ' AP CK 6/212006 TUR007 TURNER-MARY 6/6/2006 12-05 225.00 20661' M> CK 61212006 UNI002 UNITED PARCEL SERVICE 12-05 32.00 20681:' AP CK 6/212006 UNI013 UNION BANK OF CALI FORNI, 12-05 159,917.52 20661:, M> CK 6/212008 VER009 VERIZON 12.05 854.67 20661.. AP CK 6/212006 VUL001 VULCAN MATERIALS COMPJ 6/5/2006 12-05 2,772.63 20661 ~, AP CK 61212006 WHI005 WHITEHEAD-ROGER 12-05 311.9S 2066111 AP CK 6/212006 WIC004 WICK-HEATHER M 12-05 19.88 20661:' AP CK 61212006 WIR003 WIRELESS WATCHDOG, LLC 12-05 232.00 2066111 M> CK 6/512006 SAN038 SAN BERNARDINO COUNTY 12-05 444.00 20661!1 M> CK 61712006 ACB001 A.C.BYERS TRUCKING INC 12-05 3,187.00 2066211 AP CK 6f712oo6 ADP002 ADP 12-05 352.80 20662' M> CK 61712006 ATI001 A.T. & T. 12-05 90.49 20662: ~ AP CK '617/2006 A TI007 AT&T 12-05 542.11 20662: I AP CK 61712006 ATW001 ATWELL-JOSHUA D 12-05 43.02. 20662, , AP CK 61712006 BOY011 BOYD-JOHN, 12-05 14.12 20662! i AP CK 61712006 CLI003 CLIFFORD L UTLEY 12.05 375,00 206621 i M> CK 6f712006 COL001 . COLTON TRUCK SUPPLY 12-05 10.00 20662' , AP CK 617/2006 COM002 COMSER CO, INC 12-05 1,162.74 20662: I AP CK 617/2006 DEL022 DELL COMPUTER CORP. 12-05 2,344.31 20662: I AP CK 617/2006 END001 ENDERS SE9URITY & 12-05 12.666.60 2066311 AP CK 61712006 ESB001 E.S. BABCOCK & SONS, INC 12-05 2,670,00 20663 I AP CK 61712006 EVE001 EVERSOFT, INC 12-05 130.78 20663: ! M> CK 61712006 EXP002 EXPERIAN 12-05 76.20 20663,1 M> CK 617/2006 FAI002 FAIRVIEW FORD SALES,INC 12.05 273.83 206631 AP CK 61712006 FEOO04 FEOEX FREIGHT WEST, INC. 12-05 51.83 20663 ; AP CK 61712006 GAR076 GARCIA-BETTY J 12.05 164.22 20663 5 AP CK 61712006 GEN007 GENUINE PAins COMPANY 12.05 408.51 206631 M> CK 61712006 GOL002 GOLDEN WEST TIRE 12.05 627.53 206633 M> CK 617/2006 GON057 GONZALEZ-FAUSTO 12-05 36.08 20663l M> CK 61712006 GRI015 GRIFFIN-DENHAM-MAURA 12.05 55.99 20664 ) AP CK 61712006 HAA001 HAAKER EQUIPMENT COMP, 12.05 72.65 206641 AP CK 6/7/2006 HAI003 HAIG-BILL Y A 12.05 S6.52 206642 AP CK 61712006 HAP001 HAPPY BOY CAR WASH 12.05 252.77 20664 3 AP CK 61712006 HAR009 HARPER AND ASSOCIATES, 12-05 1.572,50 206644 AP CK 61712006 HIC002 HICKS - RICHARDSON ASSO 12-05 4,000.00 206645 AP CK 6f712006 INLOOS INLAND WATER WORKS SUI 12-05 12.104,70 206646 AP CK 61712006 INT005 INTERSTATE BATTERY 12-05 124.13 206647 AP CK 61712006 JOY002 JOYCE CLEANERS 12-0S 9.90 206646 AP CK 6f712006 JRF001 J.R. FREEMAN CO., INC 12-05 1,406,94 206649 AP CK 6f712006 KLH001 K & L PLUMBING SUPPLY 12-05 237.67 2066:0 AP CK 6/7/2006 KOD001 KODEIH HOMES INC 12.05 88.35 2066:1 AP CK 6/7/2006 LAW002 LAW PLUMBING CO 12-05 33,418.50 2066:2 AP CK 6/7/2006 LLU001 L.L.U. RADIOLOGY MED GRF 12-05 233.00 2066:3 AP -cK 6/7/2006 LOW007 LOWMAN-LINDA 12.05 60,29 2066:4 AP CK 6/7/2006 MAR102 INVESTMENTS. INC-MARQU 12-05 1.67 2066~5 AP CK 6/7/2006 MCC023 MC CROMETER INC 12-05 5,672,69 2066~6 AP CK 6/7/2006 MET008 METROCALL 12-0S 132.12 Date: Wednesday, June 07, 2006 East Valley Water District Page: 5 of 5 Time: 03:39PM Report: 20600.rpt User: KATHY Check Reaister . Standard Company: EVWD As of: 6/7/2006 Bank ACt. .aunt Citizens Business Bank 13110 00-00-000-0-000-00-00 Check JI Tn Check Payee Clear Period Nbr Tp Tp Oate 10 Payee Name Date Post Amount 206657 AP CK 6n12006 MOB002 MOBILE MINIINC 12-05 80.53 206658 AP CK 6n12006 NAT019 MGMT -NAT'L PROPERTY 12-05 158.90 206659 AP CK 6n12006 NOR023 NORTH AMERICAN RESIDEN 12-05 66.63 206660 AP CK 6n12006 OFF007 OFFICETEAM 12-05 1,307.60 206661 AP CK 6n12006 PED004 PEDERSON-JOE 12-05 61.46 206662 AP CK 6n12006 PMIOOl PMI 12-05 644.22 206663 AP CK 6n12006 ROS037 ROBERTSONS 12-05 1.409.26 206664 AP CK 61712006 SAN004 SAN BERNARDINO-CITY OF 12-05 412,021.13 206665 AP CK 617/2006 SOC004 SO CAL EDISON COMPANY 12-05 3.996.12 206666 AP CK 6n12006 ST A003 STATE OF CALIFORNIA 12-oS 25.678.59 206667 AP CK 617/2006 STA054 HOMES-STANDARD PACIFIC 12-05 289.37 206668 AP CK 61712006 STR004 STRADLlNG,YOCCA,CARLSC 12-0S 5,395.60 206669 AP CK 617/2006 TUROO8 TURKEL-~ANDRA 12-05 151.00 206670 AP CK 617/2006 UND002 UNDERGROUND SERVICE A 12-05 219.20 206671 AP CK 617/2006 UNIOOl UNITED STATES DEPT OF IN 12-05 26.25 206672 AP CK 617/2006 UNI021 UNITED SITE SERVICES OF ' 12-05 282.11 206673 AP CK 6n12006 USF002 US FILTER WESTATES 12-05 11,380.00 206674 AP CK 6n12006 VER003 VERIZON WIRELESS 12-05 127.70 206675 AP CK 61712006 VEROO4 VERIZON 12-05 31.24 206676 AP CK 61712006 VULOOl VULCAN MATERIALS COMP~ 12-05 824.52 206677 AP CK 61712006 ZEEOOl ZEE MEDICAL SERVICE # 12-05 37.39 Check Count 251 Bank Account Total 1,577,844.92 Count Amount Paid Regular 249 1,581.031.92 Hand 0 0.00 Void 1 -3,187.00 Stub 0 0.00 2ero 1 0.00 Mask 0 0.00 Outstanding 0 0.00 Unused 0 0.00 251 1.577,844.92 Friends of the Highland Branch Library Apri125,2006 Mr Kip Sturgeon c/o East V alley Water District Dear Mr. Sturgeon: The City of Highland has been awarded a five rnillion dollar grant to build a new library and environmental learning center on Central Avenue next to a park and the community center on city owned land. Groundbreaking is expected in spring 2006. This library will be state of the art and a significant asset to the community with a computer lab, literacy lab, young adult study areas, an environmental roof garden, meeting rooms and an amphitheater. It will also serve as the school library for'Cypress Elementary School located across the street, and will house all of the textbooks used in the classrooms. Students will be able to use ~e library evenings and on Saturdays when school libraries are nbrmally . closed. The area serving Cypress School is low income. These children are not likely to have the advantages such a~ personal90xnputers available ill their ho~es. Additionally, the library will be within walking distance from home for many children, eliminating transportation problems. This library will help give students from a disadvantaged neighborhood a safe, quiet environment in which to learn. Friends of the Highland Library, a 501 (c) 3 co=unity support group, has committed to raise $125,000 to furnish the children and young adult areas of the library. East Valley Water District has an established presence in our community and we ask for your support as a major corporate sponsor. The library will provide permanent reeognition via a donor wall in the library. We believe this library is a quality project worthy of your support. It will be a long lasting presence for East V alley Water District in the city and will serve Highland and its neighbors with pride for many years to come. S:incerely, '~tAh c'-- O~. Donna Call Chairmen, Fundraising Committee CJ-e-lVv~ J&Z Timmer ( lA/~.,""",-'--------. [f/ENDS Of THE HIGHLAND BRANCH L1BRAR Y.,. A California non-profit corporation. Tax ID #90-010-1162 FRIENDS OF THE 'HIGHLAND LIBRARY SPONSORSHIP LEVELS BRONZE $1,000 SILVER $2,500 GOLD $5,000 PLATINUM $10,000 DIAMOND $25,000 NAMING OPPORTUNITIES ARE ALSO AVAILABLE CONTACT INFORMATION: DONNA CALL 909-862-9316 " OR , HIGHLAND 'BRANCH LIBRARY 909-862-8549 A Project ofThe City of Highland Rosa Jones, May:or Lany M,cCallon, Mayor Pro Tern Penny Ulbum, Council Member John P.l1mmer, Council Member Jody Scott, Council Member Sam Raeadio, City Manager County of San Bernardino Bill Postmus, Rrst District Supervlsor Paul Blane, Second District Supervisor Dennis Hansberger, Third District Supervisor Gary Ovitt, Fourth District Supervisor Josie Gonzales, Fifth District Supervisor Ed K1eczykowski, County Librarian ~:fl~.~~~W~~k~~m~~1!~1m~~r~~~11~~~le~1n~1~~' ~!li:II...Rlti&lg&1..IlB~ ctyQfHlgt'lllrld ',r~'" "', Impl'OY'me~"~p=utnry SlllB~ ", ~~ ~~ " COnsI\lCl!l: ktol'2 COW'lIyutnry .~,:'Y . I 'W". ..... t'; I,';" .", .~. SUl!lmll.Des~gn \ COn;rasn'NlJIIT"f~ FMJX!sllflheHlghllrltlLb1.ry .~,~... ~:...."")I,::.'.~,'" .':" Courttct~I\Semard~ EPA . ,." ........--,.. mo- Edge Development ;:~}i~t~i~%~1;1tf:~2'~{~li~i~~!~~it.~t.11~:~~);~t~l~~~l~Y~~~:~ftI:;:?~1!~~~~j~~::M~~~~~~~f~1~j:~s~~..:i STKNchitecl!Jre Inc. CASE STATEMENT HIGHLAND LIDRARY & ENVIRONMENTAL LEARNING CENTER wtStT.twp..tivn. The County's Highland Library and Environmental Learning Center and its professional stafffaee a growi ng daily need to provide full-spectrum access to an ever-expanding complexity, variety, and quanl ity of rapidly changing information and ideas, often on a global scale. The new Highland Library and Environmental Learning Center will provide innovative information reSOL rees, technologies,. and user-centered serviees to meet the enormous challenge of the evolv ing information demands of the public. Residents and patrons need to find, evaluate, and use infornation at a very rapid pace, requiring access to a wide variety of printed, recorded, or online infornation, often through the assistance of a highly trained staff. A gift to the Highland Library and Environmental. Learning Center can . Help purchase books, journals, videos, CDs, DVDs and databases in support of expanded library capacity, and create a Special Collection of Environmental Education material; " . . Provide new exhibit areas and special features that will showcase the library's treasures and resources for thousands of visitors and patrons every year; . Equip new study rooms and the Young Adult Internet Cafe where students can perform research and assignments collaboratively; . Provide technology kiosks that teach youth about the environment and the natural world through exciting and intellectually stimulating games; . Equip the Multimedia Auditorium and Outdoor Amphitheater with audio-visual technology to support educational and community programs; . Provide environmental technology and equipment to support K-12 curriculum standards. No !i'reat community can exist without a great library. As a society, we are challenged on many fronts to provide the free and equitable access to information that sustains a democracy. In a world full of economic and educational barriers, America's libraries have <I unique role and responsibility. They are places where people OIf all ages and backgrounds come to learn, enjoy and better their Jives. , . Donor Ontions Engxaved Brick $50 Engxaved Book Spine $75 ELC Major Donor Board: Laser Engraved Granite Tile, various sizes, configurations $250 - $5,000 "Official Californja" Exhibit sponsorship - 1 0 selections, various sizes $2500 Room Sponsorships: Environmental Wet Lab Exhibit Hall Discovery Zone animal habitats Children's Library Children's Special Feature Rooftop gardens -21 selections Computer Lab Young Adult Center Multimedi\l Auditorium Entire Building $50,000 tbd tbd tbd $25,000 vanous tbd tbd tbd $1 million+ "OFFICIAL CALIFORNIA" Saber Tooth Tiger (Donor Text Here) ,PI "__, 11(~:; \~. - ~. ~l." 1 -, . . -, - eZJ~~@o{tl~ [?~ L"~~. ~," ", ~...=" ~'!.I.~ ~ --. \~< Gmkgmfg golklkl olll.. ; ;fffdiffjidsur,:.. '{findaiorf ff~~ o.[i'if '" "l,[lrtj :X:~E~- o;q' d (J"::t: ~ 9 "l,oo' .~..", fl.:rn:[ en... "'~~ .-~ ;;n &a.~ G'''' l e[i'", ~ fie ::;d' "5; ~ - "'''' ~ tnW~ ;I!;"- ~2D -. 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't . 0: thI1~ii> .Q~~.2:i""'" "0 j:j 0 ;;s 0 ~ ~ ~ 5'] g>" 8: ~..up.l::~O ~ <<.aESaI" .~ " 8 ".f;'o A.. 4.' i> (ll ~ ~g..!lg"'g. ~~ r~ ~ ~ I;>, >< Ul Yes, I would like to help build tht 7llW Highland Library and EnvironmmlaI c.nfer. Today. Date: Name' Address: Phone. email' Zip' D Please accept my donation of: (J P1E!ase contact me about volunteering with The Friends of the Library (] Plese check here if you do NOT want your name used in any public recognition or donor list. Detach and Mail to: Highland Branch Ubrary, At!n: FOL 27167 Baseline, Highland, CA 92346 We are a 501(c)3 nonprofit corporation. All proceeds are tax deductible. #90-0101162 We II11mk J"" for J""' support! GMID Invoice Architecture - Planning - Interiors 350 W. 5th Street, #201 San Bernardino, CA 92401 509-889-4480 Fax 909-384-9034 10181810 831VM A311V ^ lSV3 Invoice Date: Invoice #: 9DOl S 0 (ldV ~ 2/2212006 03683-24 Bill To: Project: East Valley Water District Brian fompkins East \ alley Water District 1155 ')el Rosa Avenue P.O. l.ox 34273 San B,mardino, CA 92413 Terms: Please Remit ... Project Man... Project Due on receipt 2122/2006 GM 03683 Percent Due Previously Contract Item Contract Task Decimal Contract Amt Billed Balance Amount Due Equivelent Addendum to Agreement Dated: November 18,2003 Fees Phase l.A-1. 1 70,000.00 0 0 70,000.00 Two requested increases in the size of the - Administration Building which resulted in design changes for GMID and all Consultants. Increase in scope for Landscape Architect for the slope easement. Design changes for the Operations Building and Warehouse initiated by new staff (eg. Special ventilation for weld shop, warehouse and warehouse racks). Fees Phase tAll. I 10,000,00 0 0 10,000.00 Coordination, Project Management and Bid Solicitation with EVWD vendors for new andlor specialized equipment. (eg.Gym equipment and warehouse racks). Fees Phase tAll! I 60,000.00 0 0 60,000.00 Additional Coordination, Project Management, & Bid Soiicitation with Client Consultants, Geotechnical Engineer, Fire Suppression and Art Consultant. Adding these Consultants to the Architects Contract. Fees -1,!'hase IAlY, I 60,000.00 0 0 60,000,00 Project Manager Approval: Total Due This Invoice Page 1 GMID Invoice Architecture - Planning - Interiors 350 W. 5th Street, #201 San Bemardino, CA 92401 ~09-889-4480 Fax 909-384-9034 Invoice Date: Invoice #: 2/22/2006 03683-24 -- BiI To: -- Brian Tompkins East' /alley Water District 1155 Del Rosa Avenue P.O. 30x 342'13 San liemardino, CA 92413 Project: East Valley Water District Terms: Please Remit ... Project Man... Project Due on receipt 2/2212006 GM 03683 Percent Due Previously Contract Iterr Contract Task Decimal Contract Amt Billed Balance Amount Due Equivelent Unforeseen complexity and time regarding the site design. The complexity issues include: 1, Slope easement - Owner requested. 2. West side channel was piped and covered over. Additional meeting. and City coordination required. 3. Sewer service road required San Bernardino City Engineering Department. 4. Alternative grading concepts designs requested. Fees Phase IAV. 1 10,000.00 0 0 10,000.00 Increased Scope ofWark for Emergency Control Center, Security and Site Access. Fees Phase l.A. VI. 1 20,000.00 0 0 20,000.00 Increase in Scope of Work for Furniture and Fixtures design and specifications. The increase was the result of: 1. Increase building size. 2. Multiple layout options due to new Department Directors. - Fees Phase I AVII. I 20,000.00 0 0 20,000.00 Coordination of Special Equipment and needs of Buildings B, C, D, and E. New equipment, furniture and fixture design. . Project Manager Approval: Total Due This Invoice I I Page 2 GMID Invoice Architecture - Planning - Interiors 350 W. 5th Street, #201 San Bemardino, CA 92401 \109-889-4480 Fax 909-384-9034 Invoice Date: Invoice #: 2/22/2006 03683-24 -. BilITo: Brian Tompkins East ~, alley W:3.ter District 1155 Del Rosa Avenue P.O.llox 34273 San E emardino, CA 92413 Project: East Valley Water District -- c> Terms: Please Remit ..' Project Man... Project Due on receipt 2/22/2006 OM 03683 Percent Due Previously Contract Item Contract Task Decimal Contract Amt Billed Balance Amount Due Equivelent Fees Phase I.B.1. 0.8 20,000.00 0 0 16.000.00 Coordination for L.B.E.n. increasing to gold certification with L.E,E.D. Consultant and with Southern California Edi:lon Savings by Design. Pursuing the Gold options have involved more coordination with the Consultants. Fees Phase I.B.II. 0 10,000.00 0 0 0.00 Coordination and ordering of specialized equipment with Vendors for the project , , during construction. (eg. Furniture, specialized lighting and art work.) Fees ... Phase I.B.lII. I 20,000.00 0 0 20,000.00 Increase in the cost of the project, greater scope of work resulting in more work for the design team. Fees Phase 2.A1. 0 200,000.00 0 0 0.00 Provide Project Management during Construction Document phase and during the construction of the project. This service i~: in addition to construction administration which only covers answering RFI's, Field Observation and reviewing submittal. Project Management will include coordinating with the various vendor and Consultants and building commissioning. Project !lI1anager Approval: Total Due This Invoice $286,00000 I Page 3 JUN-)5-2006 MON 04:10 PM FAX NO. p, 01/40 A'~ f! Yucaipa Valley Water District ~... .. 12770 Second Street, Yucaipa, California 92399 Water, Sewer arid Recycled Water Rate Analysis April 29, 2005 JUN-C5-2006 MON 04:10 PM FAX NO. P. 02/40 YucaIpa Valley Water District W:lter. Wastewater and Recycled Water Rale Analysis Table of Contents E lC.ecuttve Summary _....... ..................I............u.... ..................... ......... .................u..................... ......3 1 IntroducUon .... ........ It ......,....... ..". '0' n' ....... on .0..... 0" t. ..0.... It ...... '....f'. nl.. .... '0..0. ,..u.'" ......... ,_.....5 '(.1. Overview of the Yucaipa Valley Waler District .....................................................6 1.1.1. Land Use Within the District .................................._..................................6 1.1.2. Governance and Managemant.....,...........................................................6 1,1.3. Development Impact Fee Overview..........................................................8 1.1.4. Supplemental Water Purchases In 2004 and 2005...................................9 1.2. Common Questions and Answers........................................................................9 :~. Economic Assessment ........ ....... ............. ..._.............. ................................................"u...13 2.1. The E:conornic Nature of Utility Operations ........................................................13 2.2. Basis of Accounting in Utility Operatlons............................................................13 2.3. Fiscal Year 2004 Audited Financial Statements................................................. 14 2.4. Evaluation of Current Financial Condmon ..........................................................16 2.4.1. Net Operating Revenue Analysis............................................................16 2.4.2. Capitalization Ratio Analysis ..........................................:.......................16 2.4.3. Rate of Return Ana1yslsu.,......,.....................,I..;.....n.......u..........~..........H 16 2.4.4. Depreciation AnalysIs .................................................... ...................,.....17 2.4.5. Comparison of Capital Assets ............................................................:...1 B 3. An Assessment of Projected Revenue Requirements ...................................................19 3.1. Current and Projected Customer Base ........................................._....................19 3.2. Evaluation of Water Demands .....................,.....................................................21 3.3. Operating expense Projections.................................................................,........22 3.3.1. Water Division Expense Projeclions.......................................................23 3.3.1.1. Cost of Supplemental Waler Supply - SElVMWD...................23 3.3.1.2. Cost of Supplemental Water Supply - SGPWA ....................24 3.3.2. Wastewater Division Expense Projectlons..............................................24 3.3.3. Recycled Water Division Expense Projections .......................................25 3.4. Capital Expenditures and Debt Service Obligations .......................................,...25 3.4.1. Water DIVision Capital Improvement Projects.........................................25 3.4.1.1. Yucaipa Valley Regional Water Filtration Facility ..................25 3.4.1.2. Non-Potab'le Water System Improvements ...........................26 3.4.1.3. Potable Water Distribution System ~ Storage Reservoirs ......26 3.4.1.4. Potable Water Distribution System. Pumping Facilities ........26 3.4.1.5. Potable Water Distribution System. Transmission Pipelines 26 3.4.1.6. Potable Water Distribution System. Distribution Pipelines....27 3.4.1.7. Potable Water Distribution System. Wells ............................27 3.4.2. Wastewater Division Capi\allmprovement Projects................................27 Page 1 Apr1129,2005 ' JUN-0!j-2006 MON 04: 10 PH FAX NO. p, 03/40 _.~-- - _. - - - ._.. --- Yuoalpa Valley Water DistrIct W;lter, Wastewater and Recycled Water Rata Analysis 3.4.2.1. Wastewater Treatment..........................................................28 3.4.2.2. Western Regional Interceptor Facilities.................................28 3.4.2.3. Lift Station Improvements .....................................................28 3.4.2.4. Wastewater Collection System..............................................28 3.4.3. Debt Service Obliga!ions........................,......,........................................29 3.5. ERAF III and the Implications for YVWD............................................................29 3.5.1. California Property Tax Overvlew...........................................................29 3.5.2. Educational Revenue Augmentation Fund III (ERAF B1),........................30 3.5.3. Overview of Property Tax Revenues for YVWD .....................................32 Jr. Summary of Rate Structure Changes............................................................................34 4.1. Assembly Bill 2115 - Property Tax Shift ............................................................34 4.2. Water and Wastewater Overview.......................................................................34 4.2.1. Water Division ............................................ ...........................................,..36 4.2.2. Wastewater Division .......u~~.~~~..............., ............. ............................. ...... 36 4.3. The 'fVIND Financial Rate Projecllo~ Model......................................................37 4.3.1. Future Conditions and Projected Parameters ...."...................................38 4.3.2. Water DIvision Ana[ysls ......n...... ........ .............. ......................................38 4.3,3. Wastewater Divi.slon Analysis.................................................................39 4.3.4. Recycled Water Division Analysis ..........................................................39 4.3.5. Important Elements Included and Nollncluded in Rate Analysis ............39 5. Attachments: Attachment A Proposecl Resolution No. 13.2005...........................................40 ' Attachment B Resources & Citations UUlized in the Preparation of this Rate Analysi~ ...:...... .............................,..... ........ ................:........54 Attachment C Attachment 0 Attachment E Attachment F H.R. 1008 ................... ..........................,.....................................55 stale and CIty Gives & Takes since Proposition 13 .................59 ERAF III Shift Confirmation ......................................................65 Waler Related Regulations ......................................................67 Page 2 April 29, 2005 JUN-(15-20013 MON 04: 10 PM FAX NO, p, 04/40 Y lcaipa Val/eyWater District \'I 'afer, Wastewater and Recycled Water Rate Analysis Executive Summary I.t the board workshop on November 8, 2004, the District staff presented a proposed E upplementaJ water rate structure for the purpose of purchasing imported water from San Bernardln.o Valley MunIcipal Water District and San Gergonie Pass Water Agency. Upen cliscusslng this propesed rate structure, the Beard recommended that District staff prepare a more comprehensive rate analysis that takes into c.onslderati.on, not .only supplemental water, 'Jut alse all preposed projects, regulat.ory requirements, inflation, custamer grawth, system demands, and ather related issues. District staff cempleted the comprehensive financial repart :3nd rate analysIs which was provided to the board and the pUblic at a werkshap on March 23rd. This rate analysis was further refined with input from the public and beard members at subsequentwerl<shops on March 281h, April 71", April 111h, April 181\ April2Slh and May2.nd. The reason far preparing this comprehensive rate analysis is primarily dUB to the fell OWing slgnincant financial issues experienced by the Olstrict: · The Dislrlctlost over $2.2 million in property tax' revenue to the State of California as a result of EMF III in fiscal years 2005 and 2006, While the District Is pursuing legislation for the early reinstatement of property taxes in fiscal year 2006. the Dlstriot is anticipating a total loss of $2.2 million" wilh the return of the pr.operty tax increment beginning again In fiscal year 2007. · Th!" District Is purchasing supplemental water supplies from San Bernardlne Valley MunicIpal Water Dlstrlct and the San Gorgenlo Pass Water Agency to offset current groundwater production as a method of making our Watet resources more reliable. During 2005 and 2006, the District will operate an interim water filtration facility ta help meet prejected w<;tter demands. '. . The District is required to upgrade the wastewater treatment plant to meet stringent' nitrogen limits and te prepare for the addition of reverse .osmesis technology pursuant to the basin plan adopted in late 2004. The facilities necessary ta meet the new n1lrogen requirements are expected to cost $27 mlllion. The District has not budgeted for the costs associated with the reverse osmosis facility that will be reqUired in the future. · The District Is experiencing significant overall increases in expenses such as prevailing wages. concrete, steel, fuel, workers compensation, pension payments. ete... .. The District's workers cempensallon expenses have Increased from $52,666 in 2001 to $335,297 In 2004. This represents an overall Increase .of 637%. .. At the wastewater treatment plant, the'District has experienced: . A 9% annual Increase in biosolld disposal rates over the past five years; and . A 17% annual (ncrease In "the cost'of disinfection related chemicals. · The Districtls required to canstruct facilities ta remeve water from San Tlm.otee Creek ta meet the basin plan. requirements. This pipellne project Is estimated to cost $17.5 millien. This pIpeline will allow the Plstrict greater access to recycled water and minimize future NPDES related casts. This rate analysis is intensely comprehensive due te the fact that II incorperates the im~l~menlation of numerous financial, environmental, regulatory and long-term visianary " policIes Into one document that can be used as a tool to communicate with the public. spf~cmcally, this document includes numerous policy discussions that are presented In such a manner that allows the public to understand the broad concepts and how each issue Is intertwined with other issues In the general operation of the District. It is not the intent of this documentt.o secure .or promote full funding for all policies discussed. Rather, the intent is to P~ge 3 April 29, 20Q5 JUN-05-2000 MON 04:10 PM FAX NO, P. 05/40 Yucaipa Valley Water Distriot \~ater, Wastewater and Recycled Water Rate Analvsls l;how that the District Is a complex and multifaceted business with the responsibility of protectlng Bnd enhancing the infrastructure that is required to promote the local and regional economy and Iwerall quality of life of our customers. Throughout this document, the following policies will be addressed: . Maximization of the protection of the groundwater basins with respect to quality and quantity of available water; -. . Development of a regional recycled water project wilh the capability to integrate additional water supplies to enhance the drought tolerance of the entire community; · Implementation of reasonable depreciation planning consistent with the requlrl!ment of asset management Included in GASB 34; . Implementation of methods for increasing the reliability and redundancy of various local water resources; · Achievement of full compliance with the Regional Water Quality Control Board and State Water Resources Control Board basin plan objectives and maximum benefit analysis; . Ability to implement a wireless grid .for interactlve facility control and customer meter monitoring; . E;stablishment of methods to improve communications with customers; . Clearly identified classifications for development Impact fee scenarios based on the type of development; . Implementation of alternative customer payment methods; . Implementation of rate stabilizing allematlves; · Construction of regional recycled water facilities which will minimize the future cost impacts assocIated with environmental regulations and NPDES permits; · Full recovery'of costs associated with delinquent payment liensj and · The establishment of benchmarking tools to continuously evaluate the financial health of the organIzation. ' . . In summary, the goal of the District Is to provide a falr and reasonable financial plan that invests in the community we serve. Perched in the upper portIon of the Santa Ana Watershed between the San Andres and San Jacinto fault lines, we are constantly reminded that the region we serve is both beautiful and unique, The challengell we face are not the same, or in some cases even remotely similar, to our neighboring agencies. Therefore, [t is incumbent upon the leadership of the Board and management staff to direct the District in such a manner to rematn commilled to professionally manage the precious water, wastewater and recycled water resources of the Yucaipa Valley in a reliable, efficient and cost effective manner In order to provide the flnest service to our customers. Joseph B. Zaba General Manager Page 4 April 29. 2005 JUN-(15-20013 MON 04: 10 PM FAX NO, p, 06/40 Yucaipa Valley Water District '^ ater, Wastewater and Recycled Water Rate Analysis 1.0 Introduction The Yucaipa Valley Water District Is made up of a proactive and diverse group of elected cfficials and employees dedicated to provIding reliable water and wastewater service In an efficient, cost effective manner that provides a high level of customer satisfaction. On May 1. ~ .002, tile Board of Directors adopted the following mission statement to c1eal1y reflecl the vision ~Ind principles that guide tile dedicated elected officials and employees of the District. Yucaipa Valley Water DIstrict Is committed to professionallY managing the precious water, wastewater and recycled .water resources of the Yucaipa Valley In a reliable, effiolent and cost effective manner in order to provide the finest selVice to our customers, both present and future. We are entrusted to selVe the public for the benefit of the community. We believe In responsive, Innovative and aggressive service, and take prIde In getting the job done right the first time. We encourage a work environment that fosters profess(onali!;m, creativity, teamwork and personal accountability. We treat our customers and one another with fairness, dignity, respect and . compassion and exhibit the utmost Integrily in all we do. ' We believe in enhanoing the environment' by following a general philosophY of , eliminating waste and maximizing recycling and reuse of our natural resources. We are' commilted to using the following operating principles as a guide to accomplishing our mission; . We are proacllve in our approach to issues, · We are committed to Integrity and consistently high ethical standards in all our business dealings. · We use the strategic plannIng process to focus our efforts and minimize our crisis management mode. . We make informed, rallonal and objective decisIons. · We aggressively pursue technologJcal solutions to improve operallons. · We are Inclusive in our decision making and delegate responsibility whenever possible. · We design our servIces around customer wanls and needs to the degree possible within our financial and regUlatory constraints. · We cultivate widespread commitment to common goals. We believe our success depends on every employee knowing and sharing these values and principles " . This comp~ehensive Water, Wastewater and Recycled Water Rate Analysis has been prepared with the District's mIssIon statement in mind to link the financial health of the District with our commitment to professionally manage the precious water. wastewater and recycled water Page 5 April 2.9, 2005 JUN-05-2006 MaN 04:11 PM FAX NO. p, 07/40 Yucaipa ValleyWaler District We :er, Wastewater and Recycled Water Rate AnalysIs re~ources of the Yucaipa Valley In a reliable, efficient and cost effective manner in order to provide the finest service to our customers. both present and future, Tc meet the mission of the District, the Board and staff members continue to proactively focus on water quality issues, water supply issues, Infrastructure deficiencies, maintenance of existing systems and compliance with Increasingly stringent regulatory requirements. 1.1 OvervieW of the Yucaipa Valley Water District Tile Yucaipa Valley Water District was fanned as part of reorganization. pursuant to the Reorganization Act of 1965, being Division I of Title 6 of the Government Code of the State of California. This reorganl;>;ation consisted of the fonnalion of the DIstrict, dissolution of the Calimesa Vlater District and formation of Improvement District No.1 of the District as successor-In-Interest. arid dissolution of Improvement Distrlct"A" of the San Bernardino Valley Municipal Water District and the formation of Improvement District of\' of the District as successor-In-interest. On ~,eptember 14, 1971, the Seeretaty of Slate of the State of California certified and declared f mnation of the Yucalpa Valley County Water District. The DIstrict operates under the County 'Vater District law, being Division 12 of the State of California Water Code (the "Act"). Although the immediate funellon of the District was. to provide water service, the District has assumed I esponslbility for provIding recycled water and wastewater service in Yucaipa Valley. The District is located about 70 mires east of Los Angeles and 20 miles southeast of Ban 3ernardino In the foothills of the San Bernardino Mountains and has a population of appr.oximately 48,3qQ, The District 15 SItuated In both San BernardIno County and Riverside County. 1.1.1 Land Use Within the District , The altitude of the District rises from about 2.000 feet above sea level at the western end of the valley to about 5,000 feet at the eastern end. with average elevation of roughly 2,650 feet. The topography of the area is characterized by rolllng hills separated by deeply entrenched stream beds, namely, the Yucaipa and Wilson Creeks. The District lncludes the incorporated cities of Yucaipa and Calimesa which are In San Bernardino and Riverside Counties respectively. The District projects that the undeveloped land within its boundaries will continue to be developed consi-otent with the general plans as provided by the City of Yucaipa and the City of eal/mesa. The projected population of the District in the year 2030 will be approximately 94,800, which refiects build-out of the City of Callmesa and the Oak Valley development. Although approxlmately 49.8% of the land within the boundaries of the District is currently undeveloped, less than 1% of District water sales are to agricultural water users. 1.1.2 ,Governance and Manaoement The District is governed by a 5-rnernber bOard of directors (the "Board"). the members of which are elected from five separate divisions of the District for staggered 4-year terms. Page 6 April 29. 2005 JUN-Oj-2006 MON 04:11 PM FAX NO, P. 06/40 yucaipa Valley Water District . W3ter, Wastewater and Recycled Water Rate Anal~lsls , ' ri 1\ The current Board members and theIr occupations are provided below. Member 01 the Board of Directors llruce Granlund, President Oavid lesser, Vice PresIdent Tom Shalhoub, Director HenlY Wochholz:. Director Scott A. Bangle. Dlreclor DivIsion Two Three One Five Four InllIal Date olSel\llce 12/23/1998 11/28/1989 12/05/1997 11/03/1971 06/0212004 Occupatlon Social SeJVlces InvesUgator Engineer Rellred Entrepreneur ReUred Benk EXCQUlive Asst General Manager. Riv. County Rt'!~lonal P~rk eod Ooen Soaee Dlslrict The following Individuals have served as President of the Board since the District was created in 19i'2, October 1971 to November 1973 OElcamber 1973 to November 1975 December 197510 October 1977 November 1977 to November 1979 December 1979 to December 1983 ,Ianuary 1984 to December 1987 ,Januarv 1988 to November 1889 YUCaipa Valley Water District PresIdents of the Board Harold l.ockwood November 1989 to December 1991 Hank Wochholz January 199210 November 1993 Geno Gasponl December 1993 to December 1995 Eve Kraft December 199510 December1\l98 Pete Squires January 199910 November 2002 Fred Childs' December 2002 10 Present Georr,e Sardeson Hank Wochho1:z David l.esser Conrad Nelson Steve Copelan Conrad Nelson Bruce Granlund Page 7 April 29. 2005' JUN-Of-2006 MON 04:11 PH FAX NO. P. 09/40 '- -~ - "- - - - - "-- _. _.. "-'~P, YUI:alpa Valley Water District W~,ter. Wastawater and Recycled Water Rate Anal~sls D'ly-tcrday management of the District Is delegated to the General Manager who works closely .wi ~ an execullve team who ullimately oversee all of the Dlstrlct's services and functions, (- - ) Tam Sha1haub Dlrld_~ - OMs~ , - '-1 ,-- - I ~ t.W111....... ) Da~M~er.~(.. tlUl:ll.U.81 I .W.ttrP(~ . WltarTr.iImfflt . Watt/' Quomv . WiI~WIlIltfT"DJme.nt . _Wolor . R~lIlQf)' Com.Pll_neo . 11ldl.l1tNJ1 Pt.lnlWl\enl [ .' '] p(tlQl GranfwKf DOcI:g~-OM~loft~ - -1'- . [o~?-~::~:J (o~~~~~i~n~) (~~~.J _ I ( JQSlph lob. ) a.....1 M...~" (.sid!; NCrCM ) Antltant Gtnot1l "'''''''' I ( ""'n H.. ) t ~.Stl!(8fory ( Vld<y er.,oId, ) t;llttrld.Cor.frOllor 1 ,( ClW/o D"'V ) Opotitklnl MJnlO't 1 . UtllilySOfYlelIs . Mil" hMct5 . Valve Me.i"'ItorIInco . HydrMl"".Il.fnt.~ . envJttM\a~ SJV(a . Maln"-nara 01 wailC'. Wq~.,~ R.eydt<lWalar lrifal\r\ldurl I ( '''ri~ ) EI'oQIno,"""P'''lOCl M<<wfl'IIl' . """,,,.,J., MtlnaglJ1'lont . P,q"'._~ . P!lV.klpfnlrt PINvlitQ . OIS/Mod.flllQ . f1jsnCteck&. tMpoct\on I .^- .. CW1omor SlrvWd . PayrallseMcn . NllIlIt MMaQom4nt. 1.1.3 Oevelooment Imoac! Fee Overview The Dislrlct charges each new unit a development Impact fee for water. wasteWater and recycled water service. This fee is used to offset the capItal cost of the water, wastewater and recycled water facilities needed to provide service all new customers regardless of their classification .- residential, schools, parks,' or businesses. The development impact fee is calculated based on a common reSidential unit, therefore it is common to see In this report references to equivalent dwelling unlls, which takes all users and equates their demand on the infrastructure as the equivalent of one or more dwelling units, O~er the past three years, the pace of new development within the District hall continued at a moderate pace, not as fast as other tocal areas such as Beaumont and Fontana. The pace of development over the past 36 months has averaged 45 water equIValent dwelling units per monlh and 48 wastewater equivalent dwelllng units per month. This development pace results tn a total of 540 to 576 dwellings per year. This annual rate of development m~IY be sustainable based on the future growth rate .within the District considering the current state of the Oak Valley 140 120 ~ 100. ~ SO 'll i 60 40 20 o ..... or- .... t"'I C'\I ('of C'4 N ~11~~~~~ ~ (J) z ~ :s ::E ~ ~ . # o( Water eous Paid N M M ~ ~ ~ ~ ~ ~ ~ ~~';!~~'i~~~'t o m ~ ~ ~ ~ Q ~ ~ .~ z ~ ~ ~ ~ z ~ ~ ~ II # 01 Wastewater eou. Paid Page 6 APrl129. 2005 JUN--05-2006 NON 04:14 PN FAX NO. P. 10/40 'l"ucalpa Valley Waler District IIVater, Wastewater and Recycled Water Rate Anall/sis Project, JP Ranch and the remainder of the" Chapman Heights Development. For fiscal year 2004, ending June 30. 2004, the District received $1,706,991 in water development fees for 617 !:::qUivalent Dwelling Units (EDUs) and $2,608,454 in wastewater development fees for 621 Equivalent Dwelling Units (EDUs). Water Developmenllmpael wastewater Developmenl Feeo Received In FY 2004 Impacl Fees ReceIved In FY 2004 600 . , ...... --- ~-- 0"1 800 C 600 500 ~ ~OO /" ----r.-. / 400 / 300 300 - - - .../...... .. - .. - 111_-II1II/"."-- W . 200 200 100 L 1DO ./- ( 0 111111 0 UIB..~ ~ t "" ~ it, I l!''''IR''''''l;;-;;!;If~llt:'- c ~ !!l S $: ~ e~ e~~~$:~d~l* # 01 EDU'. Paid per Month # 01 EOU'. Pard perMonlh CummulaU... ofFe.s Conecled Cummulalive # olFees Co_ . 242 WalorFeos conecled In FY2001 . . - 238 Sewer Fe.. CoIIeda<l1n FY2001 - 591 WalBrFoos CaUecled In FY2002 - - 470 Sower Fe.. Col!ecled In FY2OO2 ~35 WalorF.e. C.Uecled In FY2003 558 Sew'erfoes Coneded In FY2003 1.1.4 Suoolemental Wate~Purchase in '2004'and 2005 In 2004, the District purchased supplemental water from San Bernardino Valley Municipal Waler District for direct delivery (in the recycled water system) and for spreading activities. The District purchased 1,200 acre feet of water for direct delivery Into the non-potable water system at ~I cost of $ 125,80/AF, or $150,960 which was paid for by the District's recycled water customers. An additional 1,800 acre feet of imported supplemental water was purchased for recharge of our groundwater basin at a cost of $118.40/AF, or $213,120. In 2005, the DIstrict purchased 2,140 acre feet of supplemental water from San Bernardino Valley MuniCipal Waler District for a sum of $269,212 and 555 acre feet of supplemental water from the San Gorgonio Pass Water Agency for $77,145. 1.2 Common Questions and Answers This comprehensive Water, Wastewater, and Recycled Water Rate Analysis has been prepared to evalUate the overall rate ~tructure and components for the services provided by the District. Specifically, the services of drinking water, sanitary sewers and non-potable/recycled water will have been reviewed for all users In the "residential. commercial, instituticnal and industrial sectors. Funding for lhese critical services wrthln the Yucaipa Valley are recovered from those who use the service - that is, a "user pay" basis. Use is measured by the water meters (both potable and recycled) installed on the water supply to your home/business and on a fixed basis for thcse customers connected to the sanitary sewer. The following questions and answers have been prepared to help explain how the future rates will need to address system. growth, regula!ory changes and full cost accounting principles applied to the District and commonly Page 9 April 29, 2005' JUN-I)5-2006 MON 04: 15 PM FAX NO, P. 11/40 Yucaipa Valley Water District Water, Wastewater ana Recycled Water Rate Analysis used for govemmental agencies even though the District is managed and operated more like a private, business. Why change the existing rate structure? The District maintains a very cost effective rate structure designed With our customers In mind. Unfortunately, the District has recenlly encountered a series of local, regional and statewide Issues that reqUire the District to complete a comprehensive analysis of our current rate structure. In summary, some of the issues pressuring the District's existing rate structure Include: · Statewide Issues - EMF III diverted over $2.2 million In local properly taxes previously reoeived by the District to balance the budget of the State of California. See Seclion 3.5 for additional information. . Reqional Issues - In 2004, the State Water Resources Control B.oard approved the Basin Plan for the Santa Ana Region of fhe Water Quality Control Board. This regulation requires the District to maintain groundwater quallly similar to the quality that existed in the late 1~60's and early 1970's. In the near-term, thIs regulation will require the District to Implement nitrogen and TDS reduction strategies immediately on water supplies and wastewater dIscharges. In the next decade, the District will be required to construct facilities necessary to remove salt molecules from the water and wastewater supply to protect the local groundwater supplies. · Local Issues - The District continues to experience accelerated costs associated with the operation and maintenance of the water, wastewater and recycled water systems. . Specincally. the District's finances have been,negatlvely impacted by accelerated steel costs, fuel oosts,' construction costs, blosollds handling costs, and supplemental waler purchases. . In summary. as a result of stringent regulatory requirements placed upon the District's' wastewater treatment process and water filtration prooess, and the Integrated approach to solve water/wastewater quality and quantlty Issues with an aggressive investment in local infrastructure, the DistrIct has determined that It is necessary to adjust the water, wastewater and recycled water rates. What will be accomplished by adjusting the rates? The District has designed the proposed rate structure and full-sized billing to accomplish the following goals: · Improve overall revenue stability of the District; · Enhancement of the ability to discuss the complex issues of the District with our customers by providing details 10 allow our customers to better understand the individual cost elements Included in the waler, waslewater, and recycled water rates; · Modification of the billing units and fixed costs to allow for a more natural system based on the cost per day and cost per 1,000 gallons for services provIded by the District. Why .are the Yucaipa Valley Water' District's water rates dIfferent from other municipalities? Water and wastewater rates are a function of costs and how those costs are recovered. There are specific characteristics unique to each munIcipality's utility operations and dlffering regulatory requirements based on geographical location and servIce population. Yucaipa Valley District currently draws water from local groundwater wells but Is progressing towards a more Page 10 April 29, 2005 JUN-05-200G MON 04:15 PM FAX NO. p, 12/40 Yucaipa Valley Water District Water, Wastewater and Recycled Water Rate Analysis diversified water supply system relying on groundwater, local surface water, recycled water and aupplemental water supplies. This resource mix has been planned for over the past forty years 'md is now coming to fruItion to provide our local community with the highest quallty water 'esources available in a cost effective and reliable manner. Additionally, the District operates a water and recycled water system over a very unique topographical area. Consider for a moment that the District office on Second Street is approxImately 70 miles inland from the Pacific Ocean and at an elevation of 2,000 feet above sea level. If you compress this 70 mile distance into a five mile distance keeping the 2,000 feet in elevation change the same, thIs would represent the working conditions of our water supply system. It takes a great deal of non-renewable energy to move water up in elevation, and llkewise, it takes a great capital investment to collect surface water from the upper elevations of the District (when available) and transport this local water supply to the area of water demllnd. Overall, the District operates a truly unique water deliveJy system that Is more complex than most other water providers in the region, Why ara the Yucaipa Valley Water District's wastewater rates dIfferent from other munIcipalities? The District discharges wastewater and ulilizes recycled water In the Yucaipa and San Timoteo Water Management Zones as defined by the basin plan adopted on Octobar 2004 by the State Water Resources Control Board and the' maximum benefit analysis approved by the Regional Water Quality Control Board In Aprll 2005. Located at the t9P of the Santa Ana Watershed, these management zones, or groundwater basins, are highly coveted as superior groundwater qualtty that must remain pristine under the Porter-Cologne Act. This means our' wastewater treatment reqUIrements are more stringent than most, if not all other munIcipalities In southern California, While some communities achieve an economy of scale by having fewer, larger wastewater treatment plants, the District needs to maintain smaller, sub-regional facilitfes to effectively deat with the severe topography of the area. There are many other variables lncluded in the District's wastewater costs, but the examples above highlight some unique aspects of the District's operations, What factors does the District consider when setting water, wastewater and recycled water rates? Since the District acts more like a business than a classical government bureaucracy, cost recovery Is a key consideration in our rate review. Other factors in the proposed rate structure include revenue stability, conservation, fairness, economic development, competitiveness, financial sufficIency. cost recoveJy, ease of Implementation and understanding. As the focus or Importance of these factors change, the rate structure will be changed as well, When would the new rilte structure likely take effect? The proposed rate structure requires' Board approval. To ease the Impact on property owners, ~enants, and businesses and allow customers time to plan for rate adjustments, the structure 'inc:ludes adjustments over a long periOd of time. starting on June 1, 2005. Why is there a multi-level rate structure on water rates for customers? The main objectives of the mullf-Ievel rale structure Is to: Page 11 April 29, 2005 JUN-OE-200B MON 04:15 PM . .. . FAX NO. p, 13/40 Yucaipa Valley Water District Water. Wastewater and Recvcled Waler Rate Analvsts . encourage conservation; and, . recover the costs associated with peak use from customers who place a heavier demand on the system. 1 he average residenlial customer consumes about 33 hundred cubic feet or 25,000 gallons of water per month. The multl-level rate structure Ineludes rates that are increased for excess consumption which affects the above average !lsers as weir as lower tiers designed to benefit \Iater users who practice effective conservation. How would the current and proposecl rate structure compare for residential customers? There are two components to the proposed water and wastewater rate structure. ;:ixed Charges - A monthly fixed charge has been established to cover the fixed costs regardless of the amount of water consumed or wastewater discharged. These fixed costs In !he water division represent a small percentage of the overall District's water revenues, currently 15%. The wastewater monthly charge Is. a fixed fee since the .operation of the biological, mechanical and filtering systems of the wastewater treatment plant must continue to operate 24 hours per day 7 days per week regardless of whether a customer Is homa. at work or on vacatton, Consumption Based Charges - A consumption based charge on water and recycled water st;l1Vice has been adopted to oharge customers proportionally to the amount of water, they use. This multi-tiered consumption charge is used to assist In conservation and fairly allocate th~ cost of water based on consumption. . . , Will the District reevaluata the costs Included In this proposal? The District staff will be reviewing the informatfon in this document at least twice per year. The first review begins in late winter/early spring and conoludes with the adoption of the District's budget in June. The second review occurs with the completion of the financial audit report prepared during the summer wllh Board review and adoption in September. How can I become more Involved in the activltres of the Olstrlct? As a consumer, resident or business owner, the best way to become involved in the activities of the District is to subscribe to our regular meeting agendas. Tnls can be done through our webslle at www.vywd.dst:ca.us. The regular committee meetings, workshops. and board meetings are conducted as public meetings and scheduled late in the day and evenings to encourage pubic partIcipation, Also, local government is one of the most effective forms of government since your elected officials and the majority of District employees are also your nei~,hbors. Please feel free to provide us with questions, comments or concerns. Page 12 April 29. 2005 JUN-05-20D6 MON 04:15 PM FAX NO. P. 14/40 Yucaipa Valley Water District V fater. Wastewater and Racycl8d Water Rate Analysis ~~,O Economic Assessment I\n important component In the economic evaluatlon of a municipal seeviee provider Is to begin fly understanding and evaluating the overall financIal health of the District. This section briefly reviews and evaluates the historical and future economic assessment for providing seeviee to Ihe community. 2.1 The Economic Nature of Utility Operations Public utility operations, such 85 the DIstrict's water, wastewater and recycled water operations, provide a seevice to the communlly which Is essential to public health, protection of the environment, and the local economy. Public utUity operations differ from most other types of business entities in that they are highly capital Intensive; in capital construction; capital operation/maintenance; and capItal replacement This means that a large amount of capital investment is required to begin and operate a utility compared to most other businesses. The large amount of capital required to fund a utility, combined with operating labor, Insurance and other costs of operation which do not vary with consumption of water consumed, means that a majority of the costs Incurred by a utility (typically 70 to 90 percent) Bre fixed. Fixed costs are incurred whether or not customers consume water or dispose of wastewater, and are associated with providing the availability of seevice at the point of consumer use. A smaller proportion of a utility system's cost Is variable and changes with the volume of water consumed or quantity of wastewater treat~d (i.e. the oost of chemicals, power for treatment and pumping, etc.). Due to the large amount of capital required to build and operate a water, wastewater and recycle.d water utility, most public utilities are monopolies in their service areas. . . Financing Is orten requIred to construct facilities; those providing the capital should receive a fair return on Invested funds. Public polley has been established to provide a fair return on invested funds to customers of a pubIc utillly through relatively low water, wastewater and recycled water rates. These lower rates generally result from the fact that: 1) pUblic utilities do not pay federal income taxes; 2) public utilities receive lower interest rates on financing through tax-exempt bonds; and 3) public utilities do not have to pay dividends to stockholders. Operating funds of a PUbllc utility in excess of operatlng expenses end debt seNice on financing can be re-Invested in the utlllty system. This reduces the need to finance addttional capllal and. thus. allows utlllly rates to be set at a lower level. 2.2 BasIs of Accounting in Utility Operations Significant differences exist between the cash and accrual basis of accounting in utility operations. Many public utilities prefer to set rates on the basis of cash requirements. This helps to keep rates at lower levels In the short term. The 'cash basis includes only cash expenditures of a utility and does not include an allowance for deprecIation expense. Depreciation, ~owever, is a significant means of developing cash reserves for future pay-as- you~go capital Inyestment an~ replacB!""enl. Publicly owned utilities generally use the accrual baSIS of accounting for finanCIal reporting. ThIs method includes depreciation as an operating expense, and Identifies an appropriate rate' of return whlch the utility can earn on its investment In the system asset$. Under the accrual basis, depreciation expense (a non-cash item) is inCluded as an operating expen$e. Page 13 April 29. 2005 JUN-05-200B MON 04:1B PM FAX NO. p, 15/40 -, --- -' "- - ~_. -- '(ucalpa Valley Waler Distrlcl Waler, Wastewater and Rec~clecl Weter Rate AnalysIs The District's Audited Financial Statement is conducted on an aocrual basts in accordance with lhe Generally Accepted Accounting Princlpals (GAAP) and standards promulgated by the Financial Accounting Standards Board (FASS)" and the Governmental Accounting Standards Board (GASB). However, because the District prepares its budgets and long-range capital planning on a cash basis, a cash basis is utilized for this study. 2.3 Fiscal Year 2004 Audited Financial statements Historical income and expense data for the Distnct have been complied from the Audited Financial Statements for FY 2004. A couple of brief notes may help to explain this financial summary to customers not familiar wilh the District's operating statemenL . Depreciation Expense - The following financial statement is provided with depreciation listed as an operating expense, both funded and unfunded portIons. Most utilities when they examine this type of Information do not always list depreciation as an expense since it is a non-cash expense. However, in order to be perfectly truthful, honest and fair to our customers, it is important to convey the fact that not all of the appropriate depreciation is listed. Ttlis will result In higher cosls In the future when the District will need to replace aged assets without appropriate funds set aside. A summary of the Dislrict's recent financial performance Is provided In the followIng table, . 1995 Revenue Bond Payoff - In t=Y 2004,. the District paid off the balance of the 1995 Refunding Revenue Sands which incurred additional expenses not anticipated In the beginnIng of the fiscal year. . Capital Contributions . "Capital contributions are appropriatelY listed in the District's audited financiar statements as a non-opera ling revenue. For this analysis, the capi!al contributions are not included as part of net income. , . . Assessment Districts - In preparation of the 2004A Series Revenue Bonds. the District closed all remaining assessment districts, " Page 14 April 29, 2005 JUN-C5-200Ei MON 04:16 PM FAX NO, p, 16/40 --. - _. --. Y Jcafpa Valley Waler DIstrict Vraler, Wastewaler and Recycled Water Rale Analvsfs _ " . _ " . . " " _ _ _ . " FISCAL YIOAR ~D04 - " . - - - - - " . - - . - Soureo. and Uses of Funds WAter Wastewater Recycled Assessment Tol.1 W.tor Dlstrlc.ts Nol Ass.ls-July1, 2003 $ 4B,B28,458 $ 72.715,2.1 $ 1,839.B59 $ 191,09~ , 123,635,450 OperaUng Revenues: 706,851 114,280 1.697,719 proporty Taxe. 816,588 Chaf\le. lor Currenl SeNIct!s 5,772,280 4,663,119 127.624 10,563,003 mher f{evenue 767.564 34.158 B01.722 Operallng Rev.nue. 7.358,412 S,4~f128 241,904 13.062,~ Operating E><pense.: 2,80B.457 ' 4,202.885 Salanes and Weg.. 1.398,428 Elecl!ical Power 1,398,494 421,710 1,820,204 Waler Purcha..s 214.839 -" 165,023 379,862 AdmlnlSIraUve Services 376,321 B25,604 891 1,202,816 OperaUng Supplies 233,143 721,022 889 955,034 Molnl.nonce and Repairs 310,579 424.991 4,539 740,109 DepreclallonlAmorlI%llUon, Funded' 1,000,000 725,000 1,725.000 DepredallonfAmorllzaUon, Unfunded' 348,780 M79,820 10,712 1,539,312 Insurance. Professional fees 8. O\11er 720_837 231,169 4~3 958.229 Tol.' OperaUng ~pens.. 7,409,450 51925.744 188,'257 13,521,451 Nel Operattng Revenue (53,036) (461,616) 55,847 (540,993) Net Operallng Revenue a8 a Porcentage (0.7~.) (8.4",) 23.0% (4.1%) of Operallng Revenue Non-Oporilung Rovenue (Expenses): 168.417 291,087 Intorust Income 121.842 ~38 5\10 Other Income 8,710 15,li80 14.960 39,270 Los. on Disposal 01 AssetsIBond Co.ts (3ag,51~) (137,257) l528,769) Inlerest 8. Other Expense _~3681 (541.030) 6Oo-.398~ Tol.ll'lol\.()perallng (318.328) (509.8701 15,816 15,570 (796,810) Nellneome (Los.) (971,366) (911,496) 71 ;465 15.570 (25.5.817) Interlund Transfer In (Transfolll Out) 206,852 (206.662) 0 Capital Conlrtbutions 7,682,819 4,588.081 4,530,246 17.001,146 Chango In Net Assets 7,511,453 3.823.257 4,801,711 (191,092) 16,745,329 Net AssetG -June 30. 2004 68,340.921 76,,598.478 8MMBO 139,390,779 As shown in the table above. the percentage of net operating revenue to total operallng revenue is negative 0.7% for the water, negallve 8.4% for the wastewater division, and a positive 23% for the recycled water division. These low net operating revenues are due primarily to Including the unfunded depreciation/amortization In these divisions, If depreciation/amortization was not included in the financial summary above, the District would show the percentage of net operating revenue to total operating revenue In the wateT, wastewater and recycled water divisions of 17.6%, 26.4%. and 27.4%, respectively_ 1 The FY 2004 Operating BUdgel did not Include lull funding for lhe deprecIation 01 the assets used by the existing ratepayers. In FY 2004, !he Dlslrfct funded a lotal of $1,725,000 with a tolal of $1.539,312 In unfunded depreciation. As discussed In Section 2.3.4, depreCIation Is IdenUlled by the District as an expenses even though II represents an estimale of Ihe annual cost 01 USing the assets. Other agencIes Illay nolldentlly depreCiation In tholr rata analyses since a cost Is not Incurred, but by Showing Ihis expense, the DIstrict IS able 10 evaluate our economic condition both wilh lha lunded portion of depreclallon and the total deprecIation. · In the FY 2004 Audlled Financial Statements, depreclatlonlamortlzatlon for the water division Is $1,348,780, dopreclationlamortizallon {or the waslewater diviSIon Is $1.904,820 and Ihe and depredation/amortization lor the recycled waler division Is $10.712. ' Page 15 April 29, 2005 JUN-O!i-2006 HON 04: 16 PH FAX NO. p, 17/40 Y Joalpa Valley Water District ~^,ater, Wastewater and Recycled Water Rate Analysis 2.4 Evaluation of Current Financial Condition The financial condition of the District can be evaluated by applying several of the economic ~Iarameters. Among these methods is the percentage of net-to-total operating revenues, (.apilalization ratio, rate of return, and the fundlng/depreciallon policy. Each of these parameters provides valuable Information when assessing the District's financial adequacy. :~.4.1 Net Ooeratina Revenue Analvsis - 'Jet operating revenues represent the amount of funds remaining after day-to-day operatlng expenses are subtracted from operating revenues. Net revenues provide for debt service payments and revenue-paid capital expenditures. Since a positive cash flow is required for debt payments, net operating revenues should always be positive, and should be 20 to 40 percent of total operating revenues. This range depends largely on the level of net non-operating revenues and expenses. such as interest earnings, debt service, and in-lieu taxes. If net operating revenues are negaUve. revenues collected are nol provldlng for ongoing operating ,costs and are not contributing to payment of,utillty capital costs. As indicated previously, while the District Is approprIately coverIng the dally operating expenses, the District is not generating a sufficient level of operating revenues to fully fund deprecial1on. 2.4.2 Caoitallzalion Rallo Analvsls , The r.apitalizalion ratio Is a measure of the amount of the ulllity plant In service which is oWned and has been paid for'by the ratepayers and the amount of the utility assets which has been financed. The capitalization ratio for a utility systt1m relates the amount of debt outstanding relatlve to the present depreciated cost of the utility assets, and equals one minus the debt ratio, where the debt ratio Is the total debt divided by the total value of the fixed assets. Under normal financial conditions, utility operations are considered financially sound If the capitalil:atlon ratio is at least 30 percent. Capitalizati01/_ Rallo'" 1 - Debt _ Ratio Debt Ratio = Total_ Olltsal/ding _Debt - Depreciated _Fixed _Assets If net operating revenues are positive by an appropriate amount, a ulmty will have funds to pay for new capital projects and the capitalization ratio for the utility will remain at the same level or Increase. If net operating revenues are less than sufficient to maintain the utility's capitalization ralio. the ratio will decline. A declinIng capitallzation ratio Indicates revenUes are not providing for the same proportion of paid capital expenditures (equity) as had occurred in the past and that the debt ratio is increasing. Since the District was essentially without capital debt during FY 2004, the capitalization ralla analysis is not appropriate as a measure of economlo health. This tool will be applied in future rate studies as an economic Indicator of the District. 2.4.3 Rale of Return Analvsis Utilities that finance all capItal requirements should have a computed rate of return which is equal to the interest cost on its debt. Normally. utilitles which use financing to a large extent own 10 to 40 percent of the utility's assets. The rate of return for these utilities typically ranges Page 16 Aprl129,2005 JUN- )5-2006 tlON 04: 17 PM FAX NO. p, 18/40 Yucaipa Valley Water DIstrict Water. Wastew"tar and Recycled Water Rete Analvsis from 5 to 8 percent. When 40 to 70 percent of the assets are owned, a rate of return allowance of 8 to 11 percent Is generally common, if the utility desires to maintain a capitalization ralio In thfs range. For utilities which are 70 to 100 percen\.owned, rates of return ranging from 12 to 16 percent are required if the ulllity desires to continue to pay for all or most of additional capital expenditures from revenues. From the proceeding, It is concluded that with greater ownership in the utility, a higher rate of return on investment is required to maintain or Improve the equity positlon of the utility and to maIntain or Improve its bond rating, Rate levelS should be set so that the rate of return allowance is positive and adequate debt service coverage 15 provided. The District's rate of return is indicated by the ratIo of net operating revenues (total operating revenues minus total operating expenses) to, the District's rate base (property, plants and equipment asset value). The District's property, plants and equipment totals $120,315,329. A summary is provided below for each division for the purposes of calculating the rate of .retum. Water waslewater Recycloa waler OM.lon O[v(slon I'l./$lon Ploperty. Plants and Equipment $49,846.148 $63.526,473 $6,942.708 Net Opetallng Revenue (53,038) (461,616) 55.647 Wilh Full PepreclaUon Rsla 01 Ralurn (0.1%) (O.W,) 0.8% Net Opetallng Revenue 295,742 716.20.4 . 66.359 Without Unfunded OepreclaUon Rala or Re\urn 0.6% 1.1% 1.Q% Net Operallng flovanue 1.295,742 1,443,204 66,359 Wilhou\ OepreclaUon Rala or Relurn "2.6% . 2.3Y, uiy, 2.4.4 Deoreciation Analvsis Depreciation is a source of internal cash, used for financing normal system replacements or increasing ratepayer's equity in a utility system. Depreciation expense Is, in utility financial statements, an estimate .of the annual cost of using an asset. Wear and tear, corrosion, action of the elements on a utility asset, and obsolescence are reasons why depreciation expense is recorded as a cost of utility operation. Since depreciation does not normally incur a cost which requires an immedlate cash oullay on a day-to-day basis, ills considered a non-cash expense. Cash generated by the recognlllon of a non-cash expense, such as depreciation. is usually a source of internal financing which allows the utility to pay for and preserve lts original lnvllstment. In other words, It pays for capital projects involving system renewals and replacements, and funds the retirement of bond debt seNics, Cash retained should be used in such a manner as to minimize or reduce future capital costs. An example of depreciation funded projects includes the followIng examples: A. Water Service LIne Replacement Program - Consider the 10,000 water service lines currently maintained by the District with a 40 year service line life would require replacement of 250 service lines per year. At a replacement cost of $1,000 per service line. this program requires an annual budget of $250,000. Page 17 April 29, 20C5 JUN-[5-20~~ MON 04:17 PM YucaIpa Valley Water District V later, Wastewater and Recycled Water Rate Analvsis FAX NO, p, 18/40 Ei. Water Meter Replacement Program - Consider 10,000 water meters with a 15 year life expectancy would require replacement of 667 water meters per year. At a replacement cost of $325 per water meter, this pr9gram requires an annual budget of $216,775. -'hese examples of asset replacement are required as part of the GASB 34 Asset Management requirements to ensure the District adequately maintains the extensive assets under our contro\. :!.4.5 Comoarison of Caoital Asse~ .~nother useful financial measurement tool Is a comparison of capital assets: As shown below, ',he capital assets of the District have Increase steadilY over the past fifteen years. Since 1989, :he total capital assets have increased 115% percent to exceed $120 mimon. $120 Historical Accumlllsllon of Assets /j ~. $100 $80 I .-/ ~ " " $60 ~ ::;. $40 $20 , $CI __Audhed Property, Flant & Oqulprrent . . . . . . . . . m ~ ~ ~ ~ ~ ~ ~ ~ m ~ ~ ~ ~ ~ ~ The amount of capital assets Is a useful tool to quiCkly understand the complexity, responsibilities and obligations of an agency. The table below is provided to understand how the District compares to other local water and wastewater providers. Acencv San Bernardino Valley Waier Conservation Dlsl Soulh Mesa Mutual Watar Company Western HeIghts Mutual Water Company Beaumont Cherry Vatley Water District Palmdale Water District San Bernardino Vatley MunIcipal Water Dlatrlct East VatleYWater District YucaIpa Valley Water DIstrict Santa Ana Watershed Project Authority Padre Dam Municlp;ll Waler District Weslem Municipal Water Dlslrict Helix Water District Cucamonga County Water Dlslrlct Eastern Munrcinal Water Dlslnct Page 18 FIscal Year 2002 2003 2003 2004 2002 2004 2004 2004 2004 2002 2004 2004 200S 2004 Reported Capital Assets rPrnoertv. Plent & gQuiomentl $2,675,96S $4,765,953 $7,723,732 $25,554,216 $67,640,979 $69,534,640 $78,030,065 $120,315,329 $135,532,622 $142,113,000 $143,939,223 $160,500,000 $200,847,000 $849.597.359 AprU 29, 2005 JUN-Qlj-2006 MON 04: 17 PM FAX NO, YJcaipa Valley Water District 1/1 'ater, Wastewater and Recycled Water Rate Analvsls ~,.O An Assessment of Revenue Requirements p, 20/40 I" order to property assess tha Dlstrlct.s future revenue requirements, one must first evaluate find understand trends within four specific areas. These areas are: 1) current customer base "nct projected changes; 2) evaluation of water demands, 3) significant changes in operating l!xpenses including water filtratton and wastewater treatment costs, and 4) capital expanditures and dabt service obligations, The following is a brief discussion on the impact of.these factors 1m the District's revenue requirements. . 3.1 Current and Projected Customer Base A. fundamental element for developing service projections Is the quantificallon of customer demand characteristics and the revenues derived from the current schedule of utility charges. This information provides -the foundation for Integrating projected changes In demands and customer unit rate adjustments, As of .June 30, 2004, the District's customer base consisted of the following: . Water S6IVice was provided through 10,674 water seIVice connections to a total of 15, 674 Equivalent Dwelling Units. . Wastewater service was provided through 11,844 service connections to 18,671 Equivalent Dwelling Units. ". Recycled water service was prOVided to a total of 26 service connectJons, The table below contains a detalled breakdown of service connect1ons and EDUs selVed by each customer. The difference between the nu'mber of service connections and the number of dwelling units is represented by multiple units on a property and larger meter sizes for commerclal, industrial and Institutional customers. The detailed rate analysis focuses on dwelling units for the water division and service connections for the wastewater division. Water UWity Customer iype SIngle Family Multiple Units Commercial ln$UluUonal Industrial Irrigation Fire Detectors Constnl<:fIM "Total' Number of Connec6ons 9,732 491 193 57 21 78 56 4R 10,674 Number of Units 9,732 5,166 294 67 25 7B 56 46 1MB4 Wll$lewaler UIlllty Numllerof Number Connecilons of Units 10,924 10,924 641 7,317 220 326 51 65 a 39 o 0 o 0 o 0 '11,844 18,671 Non.Polab1e!Recycled Water UUflty Number of Connections o o o o o 23 o 3 26 The detailed description of the existlng customer base Is used as a starllng point to project the number and rate of new customers. The chart below Illustrates the number of EDUs added to the District's water and wastewater system each year, Notice the slow development period for a fiva- year period in the early to mid-1990's is part of the economIc cycle Which wIll return at some point in time. Page 19 April 29. 2005 JUN-1l5-200B MON 04:18 PM FAX NO. P. 21/40 "ucaipa Valley Water DIstrict Waler, Wastewater and Recycled Water Rate Analysis Even wilh several large residential and commercial development projects prepared to initiate construclion at a potentIally rapid pace, like Summerwind Ranch, Mesa Verde Estates and JP Ranch. the Dlstr1ct will not over eslimate this development polential In this rale study. Several municipalities fell into this trap in the lale 19805 and early 19905 and a rapid pace of development was believed to be normal. When development stopped. many agencies found themselves financIally over extended since they relied sa heavily on the steady cash flaw of development impact fees and charges from new growth. 1000 800 ~ 800 "0 i :iil 400 \ - ~...[1 n. n..Djhril 8! 3i ~ Ii! g: 81 tEE i ~ ~ ~ i ~ ~ 200 o ~ ~ ~ m ~ ~ ~ it it it ~ B: it it IJ Waler Development Feel Collected IJ Wastewater Developmenl Fees Collec\e Instead, this comprehensive financial report will use the data represented in the graph above as a standardized growth cycle coverIng a period of fifteen yea~. ThIs development cycle resulted in an average long-term growth rate of the District is 2.8% per year with the past three years in excess of 5% per Year. . ,~. j 12.Q% 10.0% 6.0% \ 6.0%, ,'- 4.0% 2.0% - ... 0.00/, ~ ~ iii '" '" ;t '" 81 '" '" ~ r - ~ it it it it it -% Water AnnUlI! Peroentage Chango In Servloe Conneclfons ,,,""-- I~ /_______.3" -=--=-' * ~ 8i '" '" ~ - '" '" ~ s: en C> C> '" '" c a ~ - - - ~ r '" '" it it ?c ?c it it it it it C;: -'Va Sewer -2.6% Long-Term Annual Change In summary, customer growth affects the DistrIct's revenue requIrements in two ways. First, it increases the customer base, which provides additional accounts subject to user charges. Secondly, It Increases operating costs associated with the delivery and provision of utility Page 20 April 29, 2005 JUfHJ5-2006 NON 04: 18 PM FAX NO. p, 22/40 _ _. _. _~ ._w __ _" ._..... Yucaipa Valley Water District Water. Wastewater and Recycled Water Rata Analysis f,ervices. The growth projection within the rate analysis model includes a growth projection of :~.8%, which is equivalent to approximatelY 440 dwelling units in FY 2005. While this Is a 70% decrease from 'he development activity in 2003 and 2004. the District staff oellevEls that the economy is " prepared to soflen based on leadIng economic Indicators that ... fell 0.4% in March 2005. This Is the biggest decline In the 0.4 composite Index slnce 2001. While the current weakness of the index of leading economic ... Indicators in part reflects Ihe effects of higher energy costs, -'.4 thare were eight of the ten indicators that were nagative .... contrIbutors to the index In March. Specifically, Ihese negative indicators included, jobless claims, vendor performance, building permits, average factory workweek, money supply, consumer expeclations, stock prices and non-defense capital goods ordered. The only two posilive contributors were the yield curve.and consumer goodS ordered. COJ1lpo.lle In~ot .1 10 LOOdlnG lOOI.otor. .. en.n... p.r(fcffl f'tfT.~ ''''-100 COJ1lpo.lte Indot 0110 l.lIedlng (OOI.olar. '1111-f'O .1" ." .t< .10 ". "r" I' 'n"' I" J" I' ..... 1'"1" I' 'fI,," I' "I" I '.II'.u~ 'nil C",,"r.nu ...,ef m."., AnltrtlU DcnHU ~ ,II 3.2 Evaluation of Water Demands The District only produces polable water sufficient to meet the' demands of the community. If there is a large demand for water. like In the summer season, the District will activate most of our water sources to meet the demands. When analyzing the amount of potable water produced on a monthly basis, the seasonality of the water demands becomes readily apparent. 4.000 ~ 3,500 "- Ii ~ _ 3.000 8 ~ 2.500 ~;s 2.000 '" 8 ~ ~ 1,500 ,;;- -!ll 1.000 ~ 500 o ---= ~~ ~~ /'/ ~~ .~ ...... ~ il u. ~ ~ ~ ::0 5 .. "S ..., '" ~ "- II; 8 i'i 2: ~ -2001 -2002 -2003 -2004 The diagram belOW illustrates a historical perspective of potable water consumption each year. This chart illustrates the generally increaslng trend of water consumption that conlinues to occur over time. In 2004, the District produced 5.4% more water than in FY 2003 and 3.2% more . Pago 21 April 29. 2005 JUN-O!i-200B MON 04: 18 PM FAX NO, p, 23/40 Yucaipa Valley Waler Dlstrtct VI aler. Wastewater and Recycled Water Rate Analysis p;>table water than In FY 2002. Since 1988, the District has averaged an annual water demand increase of 5.5%, $,500 iii 3,000 )0- il. 2,500 ~ 2,000 ~ 1,500 <: ,g 1,000 !i,\ 500 o ! m '" - !l! '" :!I; 8l :R Ii; '" ~ g ~ ~ ~ C5 81 Sl 31 ~ '" Q} 0> '" ." '" l'l 0 ~ ~ - - - ~ - ~ - - - - ... '" '" ~ 1:: a: It It ?i: It ?i: 1:: it it it it it it 1:: li: Gal Pllor Vear Water ConsumpUon _Wal.r Consumption (Year.t<>-oale6 - Une., Trendlln. based on Wal.r on.umptlo" 01 Pilor Ve.", The District has been working dillgenlly to expand the non-potable water distribution system throughout the YucaIpa Valley. The chart 10 the right lIIustrates how the potable water demands have been held relatively constant with the Introduction of non-potable water in August 2002. This chart to the right illustrates ttie 15.0% percMtage of non- potable water demand 12.5% as a percentage of total water demand [potable 10.0% plus non-potable waler demands). The District 7,5'l4 has set a goal of exceeding a 10% non- 5.0% potable water demanc1 which was achIeved in June 2003 and has rou!~hly been essentially achieved each summer, This goal has. been significant for the District, since the quantity of non-potable water demand removed as a demand on the potable water system is equlvalent to a large production well producing 1,000 gallons per minute 24 hours per day, seven days a week. 2.5% to: ~::! o.o%~ ~ ~ ~ ~~ ~'I '" 'l .t .., ~ ., .., s: u o 2 ~ ~ .., ... ~ ~ i to ., 3.3 Operating Expense Projections The main component to project revenue requirements is to prOVide an estimate of operating expense projections for each District division. Page 22 Apr1l29, 2005 JUN-O!i-2006 /10N 04: 19 P/1 FAX NO. P. 24/40 Y Jcalpa Valley Water Dll;trict !:'aler. Wastewater and Reoycled Water Rate Analysis 3.3.1 Water Division Expense Proiecllons The primary cost component of the District's water utility is water supply-related expenses. The Elements of these expenses are generally categori~ed as water purchases, labor, treatment, f,ower/pumping, and debt obligat1ons. Since each of the District's sources of supply lncur c1ifferent costs, the water supply plan will significa~t1Y impact utility revenue requirements. Currently, the District's available water supplies consist of three primary sources, local !lrOundwater supplies, Oak Glen surface water supplies and supplemental water supplies. The I~osts associated with the groundwater supplies and Oak Glen surface water supplies are fairly ~table fr9m a perspective of available supply and .operating expense. The quantity of water available from Oak Glen surface water sources has been limited by agreement with residents in lhe community of Oak Glen to 500 gpm, when it is available. local groundwater sources have been heavily relled upon to deliver the majority of the District's water supply. This supply is also limited; but well managed to provIde a slable and reliable source of water. Recent drought conditions have resulted in the Distncl Shifting our production capabllilies away from local surface water supplies in favor of addilfonal groundwater produotion. This has Increased water related expenses due to the additional groundwater pumping and booster pumping to replace the relatively inexpensive local surface water sources. To property manage our groundwater supplies, the Dislrlct has purchased supplemental water from San Bernardino Valley MunicIpal Water District to recharge the local groundwater supplles and has constructed non-potable water facilllies to alleviate the quantity of groundwater production within the region. The non-potable water facilities provide a benefit to both our potable water customers with Improved reliability and. provided our non-potable, water customers with an untreated water supply which is more appropriate for non-potable uses. Both the non-potable water system and the purchase of supplemental water have resulted in additional water expenses not previously Incorporated into the water division rate struclure. 3.3.1.1 Cost of Suo1?fementaf Water SuoDfies - SBVMWD The District receives supplemental water from the San Bemardino Valley Municipal Waler DIstrict and the San GorgonIo Pass Water Agency. Both agencies have established a rate structure tor water delivered from the East Branch ExtensIon that includes fixed, variable and marginal components. On November 18, 2002, tl1e San Bernardino Valley Municipal Water District adopted revised rules and regulations for the sale and delivery of water. The adopted water rates consist of a $1 08/AF energy charge and a $40/AF conveyance charge for a total base price of $148/AF. The following chart illustrates the discounts and surcharges that apply to supplemental water purchases.' . Criteria paym.nt Method Dlaeountl Waler RaUl Surcharge -~ ordered ~ - f'e,.ment 10(1/12" olll1e water 0% Discount of Water p~or 10 O<dered due at !he end or each moolh lor $146/AF ~~ Oea:mb<lr 31. lor delivery 1/10 base p~ca. base waler rate In \he folloWfng calendar ~ year. QIl.l12n2. Pa\'ll1ent In lull by Jandaty 31. 15% Discount of p. $125.8DIAF rord~un!ed rale. base water rate Page 23 Apr1l2\!,2005 JUN-(15-2006 MON 04: 19 PM FAX NO, p, 25/40 "ucalpa Valley Water District Water, Wastewater and Recycled Water Rate Analysis -- Water ordered for Ql!!iQD..1- Payment for 115'" of the waler 0% DJ$coUnt of ",all. groundwater recharn& pMor ,. dije al!he end 01 each 'I1er II month for base wator 1'310 ~U to Deoornber 31" for the base price. del1vtlry during January \I1roijgh May of the follQ\'ling ~. Payment In fun by January 31" 20% DIscount 01 year. (or dlsCllunted IlIle. ba.. waler rale Eli Water Oldered at any time 25% Surellallle dij~ng the calendar year for Paymenl method pu",u.nl to Section of base water ~_!! delivery In the same 4.070{ the Ru!es end Regulations. ral. ~.t calendar year. .,lC W'ler pun:/1a.ed from payment method ptmluant to section ~~ SBvMWO lor Use outside 01 4.07 of the Rule. end Regijlaticns. f1ate 0- the boundary of SBVMWO. baSed on OWR Bulletin 132 Appendix B. ~ $14B1AF $11e.401AF $165/AF $37B.B9IAF Overall, SBVMWD offers the best water rates for planning ahead and paying for the requested water delivery within the first month of the year. However, tl1ere Is no guarantee with respect to receiving water ordered and paid for at the beginning of the year. It is possible that operational Issues with the State Water Project, not the fault of YW'JD, and/or lack of rainfall in nortl1em California can result in less water being delivered than paid for by the Yucaipa Valley Water District. For 2005, the Yucaipa Valley Water District has requested the purChase-of 2,140 acre feet of supplemental water from San Bernardino Valley Municipal Water Plstrict at a cost of $269,212. This supplemental water purchase includes watei' for direct delivety processed by the Interim Water Flltrallon Facility and non-potable water for tl1e recycled water system. 3.3.1.2 Cast of Suoo/emente/ Weter SUDDlies - SGPWA On February 7. 2005, the San Gorgonlo Pass Water Agency adopted rules and regulations for the sale and delivery of supplemental water within their selVice area. The Yucaipa Valley Water District subsequently purchased 555 acre feet of supplemental water from the San Gorgonio Pass Water Agency in 2005 at a cost of $77,145. This supplemental water purchase inclUdes water for direct delivery processed by the Interim Water FIltration Facility and non-potable water for the recycled water system. 3.3.2 Wastewater Division Exoense Proiections The expenses for the wastewater division are anticipated to Increase as a result of new regulatory requirements, specifically nitrogen and TOS. These regulatory requirements will add new treatment technology at both facilities In order to meet \he low stringent limits established by l,he Regional Board. Within the next five years the DistrIct antlcipates receiving grant funding for the brlneline construction. This will requ1re a local match that will be made up of state grant funding and local funds. This projection is not included in the wastewater rates at this time since the amount of local participation is unknown. Paga 24 April 29. 2005 JUN-05-2006 MON 04:20 PM FAX NO, P. 26/40 "ucalpa Valley Waler District Water, Wastewater and Recycled Waler Rate Analysis -- ')epreciation continues to be underfunded In this division. 3.3.3 Recvcled Water Division Exoense Proiections The new recycled water division has received matching funds from the water and wastewater divisions. This inter fund transfer is based on the fact that the new recycled water system provides a direct regIonal benefit to both the water and wastewater divisIons. There are no unusual expenses related to this divisIon in this rate analysis. 3.4 Capital Expenditures and Debt Service Obligations Capital expenditures and debt service obligations are projected to comprise a slgnmcant component of the District's water and wastewater utility revenue requirements in the future. The majority of the District's capital expenditures are driven by water supply Issues. wastewater trealment requirements. and regulatory Issues. A projection of the anticIpated capItal improvement expenditures and each project's funding source is Included in the annual budgets. 3.4,1 Water Division Caoilallmorovement Protects The Water DivIsion Capital Improvement Program (Water - CIP) has been developed to accommodate facility upgrades and system enhancements that have been identified in the 2002 Water Master Plan. Overall. the Water - ClP has Identified over $193 million In proposed projects. The proposed Water. clP has been divided into four phases over Ihe next twenty years. An annual breakdown by fiscal year (FY) Is provided for Phase 1 tnat covers FY 2003 (July 2002 - June 2003) through FY 2007 (July 2006 - June 2007). Phase 2 covers the time period from FY 2008 through FY 2012; Phase 3 covers FY 2013 through FY 2017; and Phase 4 covers FY 2018 through FY 2022. FuMe phases extend from 2023 through 2050. PeriodIc updates to this Water - CIP will be necessary to readjust priorities and confirm recommended expendllures. . A major expenditure over the next five years Is required for design and construction of the new Yucaipa Valley Regional Water Filtration Facility. Other major expenditures Include potable water transmission mains to convey water from the new filtration faclllty, potable water storage reSllrvoirs, and the non-potable water system. Additional identified projects are needed to Improve the existing system to continue to prOVide adequate service to the existing customers in the waler service area, Some Improvements are also needed to prOVide service for antle/pateo fulure development. . . 3.4.1.1 Yuaaf/38 Vallev ReQional Water Fiflration Facllitv The first phase of the Yucaipa VaHey Regional Water Filtrallon Facility will involve the construction of a 12.0 mgd state of the art filtration facility with site planning and layout provisions for the future expansion to an ultimate capacity of 36.0 MGD. This project is being constructed to provide a redundant potable water supply to the existing community and future development, with the, goal of eliminating the overdraft on the existing groundwater basin and maXimizing the management of the local water resources. Page 25 April 29, 2005 JUN-[)5-2006 MON 04:21 PM FAX NO, p, 27/40 . (ucalpa Valley Waler District ,~ Wastewater and Recycled Water Rate Analysis 3.4.1.2 Non-Potable Water sv~tem Improvements The District is developing faCililles to use non-potabJe water to meet a portion of the water demands of the region. The objective of the non-potable system is to supplement the local potable supply in the most cost effective and efficient manner possible. Thls project is being constructed to; , . Reduce dependence on local groundwater supplies: . Minimize imported waler from Northem California; . Reduce groundwater overdraft conditions; . Reduce costs associated with construotion and operation of the regional water filtration faoUity; and . Provide a fully integrated water supply for the Yucaipa Valley. 3.4.1.3 Potable Water Distribution System . storaoe Reservoirs It is recommended that the District construct eleven reservoirs by the year 2050 (one 4 mg ,reservoir currently under construction), three addlllonal reservoirs by 2020 and seven additional reservoirs by 2050. This will add 21.5,5.0 and 17.0 mimon gallons of storage respectively, for a total added capacity of 43.5 million gallons, ihe reservoIr construction recommendations are based on desIgn criteria for fire, operational and reserve storage capacity on a zone by zone basis, storage capacity requirements are a function of average daily flow and thereby Increase as new development occurs. Additional rehabilitation or replacement projects are also Included to maintain existing facilities and preserve system reliability.' . . 3.4.1.4 Potable Water Distribution Svstem - Pumplna FacilIties The improvements and new facilll1es needed for booster pumping are summarized on the CIP summary sheets located in the master planning document. Five existing facilities require rehabilitation and upgrade inclUding such modifications as pumping equipment replacement, electrical system and/or SCADA upgrade, and miscellaneous modifications. These modifications are.required to maintain system reliability. Five new booster pump facilities are required to serve the needs of new development. 3.4.1.5 Potable Water Distribution Svstam - Transmissfon Pine/loss Transmission system projects are required to convey water from the regtonal water filtration facility to distributed zones In the service area. Major transmission project by phase are as follows: elP Phase PhaSe 1 . FY 2005 Phase 1 . FY 2006 Phase 1 - FY 2007 Phase 2 FY 2008-2012 Ultimate System Transmission Pipeline Projects Pipe Sizes Total Lenglh (Inches In diameter) (feel) 16,20,24,30 72.422 16,20,24,30 16,20,24,30 10,12',16,24,36 12,16.20,24 102,775 42,041 217,238 Total Cost ($1.000) $ 5,681 $ 5,581 $ 5,581 $22,138 $ 9.556 $48,437 Total: Page 26 Aptil29,2005 JUN-05-2000 MON 04:22 PM FAX NO. p, 28/40 Yucaipa Valley Water District Water, Wastewater and Recycled Waler Rete AnalysIs -- ;3.4.1.6 Potable Water DIstribution System - Distribution Pioellnes Distribution pIpelines projects are necessary to address growth and operational deficiencies. Major projects by CIP phase are as follows: CIP Phase Phase 1 - FY 2003 Phase 1 - FY 2004 Phase 2 FY 2008-2012 Phase 4 Ultimate System Plstrlllu\lon Pl\'lellne Pro/eels . Pipe Sizes Total Length (Inches In diameter) (feet! 18,20,24,30 18,188 16,20;24,30 12,16,20 16,18,20 10,12.16,20 29,673 10729 16.376 74.966 Tolal Cost 1$1.000) $ 1.675 $ 1.675 $ 5,710 $ 2,202 $ 2,782 $14.044 Total: 3.4, 1.7 Potable Water Distribution Svstem - Wells The CIP Inc/udes several well projects to rehabilitate existing facilities as required to maintain reliable grounclwater supply. This new groundwater supply source is necessary to replace other well facilllies that are reaching the end of their useful life. Due to the age of most of the Dlstrlct's wells, the District should embarl< on deprecialion funcled capital Improvement projects to re-drlll and re-equip the older watsr producUon wells. 3.4.2 Wastewater Division Caoitallmorovement Projects. The Wastewater DivisIon Capital Improvement Program (Wastewater - CIP) has. been developed to accommodate the facility upgrades and system enhancements that have been Identified as par! of the 2001 Wastewater Master Plan. Overall. the Wastewater - elP has identified over $68 million /n proposed projects. The proposed Wastewater - CIP has been divided into four phases over the next twenty years. An annual breakdown is provided for Phase 1 that covers fiscal 2001-2002 (FY 2002) through fiscal 2005-2001'1 (FY 2006). Phase 2 covers the I1me period from FY 2007 through FY 2011i Phase 3 covers FY 2012 through FY 2016; and Phase 4 covers FY 2017 through FY 2021. Future phases extend from 2021 through 2050. Periodic updates to this Wastewater - elP will be necessary to re-adJust priorities and confirm recommended expenditures. . A major expenditure over the next five years Is required to upgrade and expand the capacity of the existing Wastewater Treatment Plant. Modifications are required at Lift Station No. 1 to address operation and maintenance iSSUes. Other identified projects are needed to Improve the exisUng system to continue to prOvide adequate service to the existing customers in the wastewater service area. Some improvements are also needed to prOVide service for anticipated future developmenL The costs of major facilities associated with new developments have \leen assumed to be incurred by the developers. The funds for the new wastewater treatment facility and coUection system located In the Oak Valley Davelopment will be provided by both the District and by deVelopers through connection fees or other financial mechanisms. 'fhe developer wl11 provide funding to cover the capacity needed by the Oak Valley Development. The District will supplement the collection system and treatment facility projects to increase the capacity as needed to serve other District connections In the southern portion of the service area. Page 27 April 29 . 2005 _.. J~~~ J5~2006 MON 04: 24 PM FAX NO, P. 29/40 '(ucalpa Valley Water DistrIct :~ Wastewater and Recycled Water Rate Analysis 3.4.2.1 Wastewater Treatment The Henry Wachholz Wastewater Treallnent Plant currently treats all wastewater flow collecled from the District's $ewer system, A Phase I Renovation Project Is being considered as part of an overall analysis of existing WWTP and will include items such as an Integrate Fixed Film Activated Sludge process, aeratron equipment upgrades, blower controls, additlon of membrane treatment and ultraviolet disinfection. This renovation and expansion project Is scheduled to begin construction in 2006. 3.4.2.2 Western Regiona' '"lemen/or Facilities This project Involves the construction of a wastewater collectton system. fift stalion and 'force main required to serve the western portion of the service area. Construction for this projept Is planned for FY 2007. It fs anllclpated that once this project is complete, many of the septic systems in the area will transition from septic service to sewered service due to the availability. PreViously there has not been a major collector constructed in thIs portion of the District's service area. 3.4.2.3 Lift Slatlon lmoravements The District is antlcipallng the removal of several existing lift stations with the construction of the Oak Valley MeR WWTP. The removal of these facilities will require the construction of gravity pipelines upstream and downstream from the lift stations. to provide ,the necessary gravity flow condillons. Improvements at L1n Slation No. 1 are needed to provIde for maintenance activities in the wet well and force maIn. This facility will be relocated with the development of the Mesa Verde Estates Project. A new North Bench lift Station is planned to serve Tract 14429 and will be constructed in 2006. The project will consist of a lift station, 5,000 of parallel 6-lnch force mains and 2,600 feet of a-Inch .gravity sewer. It Is anticipated that developers will construcl another lift slation and 3,500 feel 01 parallal 6-inch force mains to serve remaining areas. The District's portion of the project will be funded with Development Impact Fees. 3.4.2.4 Wastewater Collection Svsfem The' collection system improvements are required to provide adequate flow capacity in the collection system and to meet the District's design crlteria. The Calimesa Blvd collector is the highest priority collection system project. Callmesa Blvd, 4lh Streef/Yucaipa Blvd/S1h Slreet, and Avenue L projects are all planned for Phase , of the elP. The collection system hYdraulic model completed as part of the master plan Indicates a need to increase the capacity of several other collectors. These needs are based on development projections and assumed start-up timing of the new WWTP in Oak Valley sometlme after 2010. The need for these projects should be re-evaluated as actual conditions are realized. A series of miscellaneous projects consistIng of short pipe lengths and minor Page 28 Aprl! 29, 2005 JUN-05-2U06 MaN 04:26 PM FAX NO. P. 30/40 YucaIpa Valley Water District Water. Wastewater and Recycled Water Rate Analysis Improvements have also been Identified. It is assumed that these projects will be Incorporated into regular District operations and malntenam:e activities. 3.4.3 bebt Service Obliaat1ons The YucaIpa Valley Water District Financing Corporation was established on May, 24, 2004 as a nonprofit public benefit corporallon organized for the sole purpose of acquiring, constructing, rehabilitating, financing and refinancing of, or providing for the sale or leasing of, facllities, land and equipment for the use, benefit and enjoyment of the public served by public agencies in the State of California and any other purpose incidental thereto. In June 2004, the Yucaipa Valley Water District Financing Corporallon issued $45,730,000 In revenue bonds for the construction of water related facililles related to the Yucaipa Valley Regional Water Fillrallon Facility. The District received strong financial ratings from Fitch Ratings Inc. ("Fitch") and Moody's Investors Service, Inc. ("Moody's.) of "Aaa" and "AA,A" .respectively, based on the District's financial strength, minImal risk of default and the issuanca of commonly Issued bond related Insurance. The District anticipates a similar Issuance in 2005 for wastewater related Improvements. 3.5 ERAF III and the Implications for YVWD Based on the FY 2005 Budget, water fixed revenues (I.e" servlce charges) only comprise of 15% of the total water division revenues. Accordingly, the District's water rate structure is highly sensitive to water usage which causes flnanciallnstablllly In wet years when water consumption Is reduced or durlng dro.ughts or emergencies when water del1veries are curtailed or voluntary conservation Is requested. Considering this Variability, the Dlstrict has become heavily dependent upon property taxes for the long-range rate stability which has significantly benefited our customers. Due to the District's Intense capital improvement projects. the Boa~d has allocated property tax dollars to fund projects that improve the service to our customers by dedicating this funding source to projects instead of operational costs, such as labor, pension. etc. This maximizes the benefit of the [ocal properly taxes to the people who pay them _:. our customers. 3,5.1 California Prooertv Tax Overview California-like most other states In this country-relies extensIvely on local governments to protect the public, help the needy, educate students, and respond to local concerns. For nearly a (;entury, California's properly tax has been reserved for the exclusive use of local governments and has served as the mainstay of local finance. Before passage of proposition 13, local governments and their residents controlled property tax rates and the distribution of property tax revenues to local agencies. Proposition 13, however, plac~d Into lh~ California Constitution a maximum rate for non-debt related property taxes and spElCJfied that Its revenues are to be allocated to local agencies "according to law." pag e 29 April 29. 2005 JUN-05-200B MON 04:27 PM FAX NO, p, 31/40 VI calpa Valley Water District W~ter, Wastewater and Recycled Weter Rate Analysis -- A; Figure 1 shows, Immediately after Proposition 13's passage, the Legislature established a pi operty tax allocation system Figure' . tt at reduced the share of p 'operty tax revenues allocated Properly TalC Allocation OverTime tel edur.ational local agencies from a statewide average of 54 percent to 39 percent-an!, fic,,~ increased the share of property taxes allocated to cilles, 50 counties, and special districls. (The slate replaced the shifted 40 ~:-14 district property taxes with 30 i'lcreased state funding.) Bpecific: property tax allocation 20 formulas then were assIgned to Hvery area of Ihe stale, 10 designating Ihe portion of the properly tax to be allocated to ,~ach local agency serving the ;~rea. These property tax .Rtd~.lopm.nl...ncI...rdop.dlld.~io'" ,~lIocatlon shares were based on SaJf""ao.Jd01 EqU.nr>ll>1. ~ach agency's proportionate share of property taxes in the mid-1970s and are commonly referred to as "AB 8" shares, after the bJII that created this property tax allocation system...... Chapter 282, Stalutes of 1979 {AB 8, L. Greene). With the exception of several relatively minor ,changes, the state dId not alterthese AB 8 shares until the early 19905. , Faced with significant budgetary challenges in 1992 and 1993, the state twice enacted major changes to the state's AB 8 property tax arlocation system to direct larger shares of property tax revenues to K-14 districts - and reduce slate General Fund spending for educatlon accordingly. These changes reduced non-educational .local agencies' share of the property tax from a statewide average of 65 percent to 48 percent. The properly taxes shifted to K-14 districts because of the 19905 property tax shift now tolal about $5 b1llion. (For context, total property tax revenues fn the current year are esllmated at $29 billion.) These property tax allocation changes commonly are referred to as "ERAF," after the name of the fund into whIch the shIfted property taxes inltlally are deposited, the Educational Revenue AugmentatIon Fund. Percent Q( Properly 7lIl(es Alloett led to Local Agencies 1(-14 _ Co~nt1G$ _ cnJ~. \ _ _ Olh.r I.oall EnU6os> I / V \ ------------- ---- /.....-- -" , , , ' , 75.7fi 7e.711 01412 8+US a7.es OQ.91 Q3.Q4 116-97 011.00 02.03 SOUl""" Leglslafive Analys/'s Office, AnalysTs of/he 2004-05 Budget Bill, Febru8ry 2004. 3.5.2 Educational Revenue Auamentation Fund III (EMF" nn PropOSition 98 reqUIred the Slate to fund education at specified levels. In order to meet this obrlgation, the state enacted legislation thai caused local govemment to bear some of the financial responsibility for thIs mandate. County Auditors were dIrected to establish Educational Revenue Augmentation Funds (ERAF) by transferring a portion of loeal properly tax revenues from local governments into the fund. EMF supports school districts, county offices of education, and community college districts. The first ERAF shift of $1.3 billion occurred in FY 92-93. ERAF III for FYs 04-05 and 05-06 Includes $1.3 billion each year, wllh the burden allocated as follows: - . Page 30 April 29,2005 JUN-O'j-2006 MON 04: 29 PM __ .. __ w~._ ._ FAX NO. P. 32/40 Yucaipa ValleyWaler District .Y latar, Wastewater and Recycled Water Rate Analysis . E:RAF III Annual Contribution Counties Cities Special Districts Redevelopment Agencies Annual Totoal (04-05 & 05-06) $350 million $350 million $350 million $250 million $1.3 billion The basis varies for determining the amount an Individual county, city or district will contribute. County contributions are based on each county's share of VLF revenues. City contributions are based on shares of sales tax, properly tax. and VLF revenues, The minimum city contribution is . 2% of its general fund revenues and the maximum is 4%, as reported in the FY 01-02 State Controller's clly report. ' . Special district contributions have two levels: enterprise districts will contribute 40% of property tax revenues and non-enterprise agencies wlll contribute 10% of property tax revenues, The maximum contribution by any specIal district Is 10% of total revenues. Transit districls will contribute up to 3% of their property tax revenues.' Mosquito abatement distrIcts are exempted. as well as fire, police. hospital/health care, library and veterans' memorial districts. Redevelopment agencies will collectively contribute $125 million based on gross tax increment and $125 million based on net tax Increment. Agencies may be granted an extension based on the remaining life of the redevelopment agency. . , The cilies and counties will 'make their 'contribution" through a reduction in the amount they receive from the State for .property taxes In lieu of VLF". .The special districts will contribute directly to theIr county's ERAF. The Department of Finance calculates the amount each special district must contribute; the County Auditor-Controller will reduce each agency's tax Increment by this amount and transfer the funds into the ERAF. Because the EMF contribution Is based on property tax revenues from two years ago, there may be instances whl~re a district's current tax increment is nol sufficient to cover the required ER:AF contribution if revenues have declined recently. Local agencies will receive their full tax increment agaIn beginning in FY 06- 07, +$2.0 State and City Gives & Takes Since Prop 13 In COfu,tant 20CM don.lr. :sInce ttlo Aaa etaUout fallowtng Prop 13 +$1.5 _SIlrl<AHltt_ (N...., If~ ,gee) .... CIJa h Stile ^"'ltfnca 1n4 1.0011 Rt'ffilua l~nQ eAAF A -Stir. C4MIII Fund Attllllnoo ~ CKlel .lrQ 1978 +$1.0 +SO.5 +$0.0 g _-$D.5 ~ ..S1.0 -$1.5 -$2.0 -$2.5 eo 82 J:yB4 FYS t 83 F'f65 l'Y1l:!~ ; Nit fYgcs fIY04 $17 fY ~ ... Page 31 April 29. 2005 . JU~95-2006 NON 04:30 PN FAX NO, p, 33/40 Yucaipa Valley Waler Dlsmcl . V\ aler. Wastewaler and Recycled Waler Rate Analysis -- 3.5.3 Overview of Prooertv Tax Revenues for VVWD Each County levies a 1% property tax on behalf of all taxing agencies in each County, including the District. The taxes collected are allocated to taxing agencies wIthin each county, Including the District, on the basis of a formula established by state law enacted in 1979. Under this f,)rmula, each County and a\l other taxing entitles receive a base year allocation plus an Ellocation on the basiS of .sItus" growth In assessed value (new construction. change of (Iwnership and inflation) prorated among the Jurisdictions, which serve the tax rate areas within Hhich the growth occurs. Tax rate areas are specifically defined geographic areas, which were developed to permIt the levying of taxes for less than countywide or less than citywide special districts. I=or 2004, the allocation received by the District of the 1% property tax is estimated to be ~p1,648,334, compared to $1,476,441 In 2003. Property taxes as a percentage of the total 'evenues of the District averaged 10% over the last five years. From lime to lime legislation has been considered as part of the State budget to shift the share of the 1 % property tax revenues collected by counties from special districts to school districts or other governmental entities. While legIslation enacted In connection with the 1992-93 State budget shifted approximately 35% of many speCIal district's shares of the countywide 1% property tax revenues, the share of the countywide 1% property tax revenues allocated to multicounty special dismcls such as the Dlsmct was exemptecf. While none of the State Budgets enacted since 1992- 93 have reallocated additional portIons of the .special districts' shares of the countyWide 1% property tax revenues, the Stale has a large budget deficit for the current Fiscal Year. Accordingly, there can be no assurance that. the allocation formula currently established by State law will be continued in the future. If the formula is changed In the future It could have a material adverse effect on the receipt of property tax revenue by the District. The results of the state's budget resulted in a 10% decrease In the District's property tax base for fiscal year 2005 and 2006. The following tables show the secured assessed valuation within the District in each County and the amount received by the Dismat of the 1% property tax during the five most recent Fiscal Years. As a result of the implementation of the tax distribution system commonly referred to as the "Teeter Plan" by the County of San Bernardino and the County of Riverside and the participation by the District beginning in July 1984, the District receives 100% of Its share of the 1 % property tax levies wilhout regard to delinquencies. There can be no assurance thai the Teeter Plan or the particIpation of the District therein will be continued Indefinitely, ~ Pan:entago Change 01 Property Tax Income San Bemardlno ro....l$lde C<>tInty YVWD AllocaUon YVWD County Total Total Secured of San Bernardino Allocation of To!,jj YVWD Secured Assessed County Proporty Riverside AllocaUon 01 Assessed Valuation T County properly Property Taxo. ValuaBoo axes Taxe. ,WOO 2,614,611,302 415.183,202'" 1,166,944 103,061 1,290,005 2001 2,733,121,447 445,931,126 1,232,593 '110,693 1,343,286 4.1\6 ,:002 2.879.961,092 485.424,330 1~72,898 117.045 1,383,591 . 3.0% ,!OO3 3.123,175.798 654,852,744 1,355,673 120.700 1,476,441 6.7% 2004 3.522.249.936 612.064.850'" 1,515109 133,225 1,646.334 11.6% Sources: San Bomardino Countysnd Rl....rslds County AUdilor.COtl~oIlers lor Tota! Secured Assessed Valuationl Yucaipa vauoyWater 0lsU1cl ror OisUlcl A1locaUon. (1) e,;Umaled ~ased on pro-rata all_tion for Fiscal Ye.r 2001 (2) Estimated ~a.ed on pro-rata all_tion for FIscal Voar 2003 FI.cal V..r Page 32 April 29, 2005 ~N-iJ~1.906 NON 04: 31 PM FAX NO, p, 34/40 Yucaipa Valley Water District : Neter, Wastewater and Recycled Water Rale Analysis Secured assessed valuation for the portion of the District In the County of Riverside for Fiscal Year 2003/04 as reported by the County of Riverside is $133,225, a 10.3% increase over the prior year. Secured assessed valuation for the portion of the District in the County of San Bernardino for Fiscal Year 2003/04 as reported by the County Is $1,515.109, an 11.8% increase over the prior Year. Page 33 April 29, 2005 JUN-!J5-2006 NON 04:32 PN FAX NO, p, 35/40 Yucaipa Valley Water Oistrlct ~~Wastewater and Recycled Water Rate Analysis 'l.O Summary of Rate Structure Changes ,1.1 Assembly BII/ 2115- Property Tax Shift In September 20, 2004, Governor Arnold Schw8rzenegger signed Into law AB 2115 which was approved by the legislature to shift property tal< revenue normally received by the District to the State of California to provide the state with additional revenue to minimize the current and ongoing financial crisis. This legislation would take a minimum of 40% of the property taxes up to 10% of the total revenue of the special district untll a total of 350 million was shifted from special districts to the state. The specific language of AS 2115 had a provision that would have suspended the legIslation with the passage of Proposlllon 65 at the general elections on November 2, 2004. Proposition 65 was originally designed to limit the ability of the State to take local revenues, however. several associations that generally represent local governments shifted their support for Proposflion 65 in favor of Proposition 1A, which did not have the same protection. The November general elections resulted in Proposition 65 failing and Proposition 1A being approved by the voters, The election resulted In AS 2115 being implemented. Subsequently; the San Bernardino County and Riverside County Treasurers offices completed their allocallons of taking property taxes from the District and on February 1, 2005 notified the District that a total of $1,135,556.39 would be withheld by the County (see Attachment "E'), . While the District Is considered fiscally conservative, this shift in property taxes has a significant impact on the DistrIct's financial stability. This reputation has resulted from the District: (1) maintaining a lean workforce with additional staff members only hired when absolutely necessary; (2) prudently spending funds on facilities that benefit our customers by prOViding reliablllty and redundancy; (3) maintaining competitive' salaries whfle not adding extravagant benefitsj and (4) respecting the fact that each dollar received by the DistrIct Is one less dollar our customers are able to spend on theIr famllies and theIr lifestyle. The District takes our rates, fees. and charges seriously and does not take the money our customers spend on services for granted, It is our desire that the dollars spent by the DistrIct continue to beneftt and add to the quality of life our customers enjoy In the Yucaipa Valley. It is prud~nt for the District to maintain a reasonable reserve fund for unexpected situations, While the District could utlllze reserve funds for funding operational deficits, it is recommended that the District maintain reasonable reserve funding levels adequate to provide for unexpected and emergency situations. ThIs is especially important since the District is one of the few California communities located immediately adjacent to the San Andreas and San Jacinto fault line,s. Information from the past Is a reasonable way to predict the future. Projections 'of future op,;ratrng and capital costs have been utlllzed as the basis for this study as they provide the best information to determine future rate requirements. While historical information is important, it is only beneficial to the e~ent that it helps to indIcate future financial needs. To meet the goat Page 34 April 29. 2005 ..JUN-1l5-200B NON 04: 33 PM FAX NO, '(Ucalpa Valley Water DIstrict : Nater, Wastewater and Recycled Water Rate Analysis p, 36/40 of planning for the future, expenses need to be projected with the best available informatton, utilizing both engineering and accounting resources. While the District should be commended for the hard work and dedication to Improving the infrastructure of the Yucaipa Valley, It is difficult to finance the water, wastewater and recycled water Improvements while completing extensive capital Improvement projects. gvery year there are increased stresses associated with the existing infrastructure of the water and wastewater systems. For Ihe water division, this Is primarily due to the consolidation of several mutual water companies to form the current Plstrict service area. For the wastewater division, the stresses are generally caused by regulatory requirements and the inflexIbility of treatment processes, The proposed rates need to account for the uncertaInty that exIsts with the increased pressures placed upon the aging Infrastructure by funding additional depreciation. Materials Prices Soar Asc.vtlt! snonage tn wall mc~l pushcl;l struc. tural steel BfJd rffnfarclng oar prtcc, to tCCCNd 1".\$ 10 2O<M IE/m 312VM p, 221:StruC11l'" 11001 pri<Ol jumpo~ 31 % ._Ilclo/lrr 2003. level vffille feoor prleCS t1imbC~ ,,:1%. ""Ices for olher fMtllrkll, 1I1SO m:IISe JMQc yeat-lo-Y!lr gal", """ Cemont P/lcas I: M!m~er Prlc8~ 85 .... . ~ aD . ! SOO 10 t l~ , i 15 , ! 60 I ' ' : , l:' 65 '94 'lIS'Il6'87'98'09'OO'ot '02'83'0} 1O'.'lC~cw.C(t4TIl...rtOI(tt/rIcU~tl(....)OtfT'fr.{l.l.C( f1.a'Olltlf'{-tt'ro:rf'I).OIllQ;U,IIt. -..--- "'.. tOO 175 1ro 145 j\sph,!11 Prices,. ._... '30 t1!. 100 i '.9~ .95'90 1)7193'99 '00'01 '02 '03 '04 1O\.1Il",PIlantJ1li"Cl)c'aHlV.QorP'lJQ'C1'l'.'MJoI:t rAQ:fI)\I.DJOkJll,tlASil\o\.l.l.1 _______ -J 400 350 . ' 300 ~ '9.\ 'SS'Il6'S7 'ODW'OO'01'02'll3'OoI lO(JlCi:[fllca~~<<WU<<P1.rucm""t1W'l f1'afOR2~.~'*'otAl'1:R:nJlXt.,l,\l:lIOlJlln roo' .... .~JYY.'Q~.d..~f.i~e8 " &00 ,600 soo 500 450 400 't)..('SSfQ6:01'G8'9!)'OO'OI'02.'03'04 1lUoCl: WI(t)IGl1'U:JlCIlrUltM;$QCI'119 arrJ.~.wl ~C('~YI.tlt\'t'ffOCIOl'(Kno.lt.\,'il)SQfT Souroe: ~ngln.erinfl Nows.Rocon:!. Oecembllr 2004, p. 61. In :zoo..,lneIudinQ. 31'.1. 1M coppervraler tuhina and ~,.. for PVC waler f)ipe. ptyWoQd prkes lay- e1O<1I1t1l1ltcr Jumplno SS% in 2003. lumber plll::es .'. up 25% III tll.ll\SI two yoar., .,.., :>I 32 30 .28 2G Structural. stee.! Prices '; I : I 1 . ! I t I \ 2l 22 . '04 '05 'oG '91 '1l8'!r9'00'll1 'O2'03'll4 JQIlX;r""l:atfl'lftQalf~om2l>cnYq"'-U f'CIICtfC'UJWNL.....D(..u.ta ~1""M KII....OfI(\l'll.'tIQI'I. _J ';' n~lnforctng Bar Prlc,es 34 31 30 28 2& Ol '9'" '9$'90'91'98'99'00'01'02'03'0.:1 $lUIt:ll[N!lQjf~l~CPJf(I.o,.,~ I'RItCrOll~DC.c.Qf(UCA]HQW 4.2 Water and Wastewater Overview Water and wastewater re~ulations In the next five to ten years will continue to become more stringent and contentious, The Increase In regUlations Is compounded by the fact thai a large 3 Water and wastewater r~ulatlons are Included as Atlachment UF". Page 35 Aprtl ~9, 2005 JUN-~~~2006. NON 04:35 PN FAX NO. p, 37/40 Y Jcaipa Valley Water District ~~astewater and Recycled Water Rate AnalysIs. majority of California's water and wastewater facilities were Installed just after World War 1\ and ~ re now reaching the end of Iheir useful life. Therefore, In addition to the costs associated with regulatory compliance, which often includes major modifications to facilities, water and \I'astewater utilities must also place a high priority on the replacement of existing facilltles. "hese two factors generally result In the cost of water and wastewater service increasing faster lhan inflation, unless utiliUes experience sIgnificant customer growth.4 The District's customer rate base is structured such that new customers will contribute to facility development and offset . his increase to some extent. 4.2.1 Water DivisIon The District's audited financial reports have been reviewed to provide a historical summary of water and wastewater expenditures over the past twelve years, The graph below Illustrates the audited expenses for the waler division from FY 1990 to FY 2004. . Hlstorlcal Water Relaled !:Xpenses from Audited Financial Reports $9,000,000 $2,000,000 $8.000,000 $7,000,000 $6,000.000 $5,000,000 $4,000,000 $3,000,000 $1,000,000 $0 ~ ~ " " " " " ~ ~ ~ ~ ~ " " " 11190 11191 1992 1993 1994 1995 19S6 1997 1998 1999 2000 2001 2002 2003 2004 Over the past fifteen years of audited financial records, the Water DivIsion expenses have Increased an average of 7.23% per year. The cost Increases have bean the result of several factors, such as constructIon material, sleel. concrete. power, labor, workers compensation, etc... · Thi$ Is due to lhe use of onginal cost rate base and rate of retum latemal<ing. As pip...s and reservoIrs ara replaced, .the rale base Increases dIsproportionately, because today's dollars are replacing 40yearcld feeliiUss. - Page 36 April 29, 2005 JUN-mi-2006 NON 04: 35 PN FAX NO, p, 38/40 Yllcaipa Valley Water District Waler, Wastewater and Recycled Water Rate Analysis -- 4 2.2 ~astewa\er Division The fjQ\lre below Illustrates the audited expenses for the water divisIon from FY 1990 to FY 2304. . HIstorical Wastewater Related expanses 1rom AUdited Financial Reports $7,000,000 $3,000,000 $6,000.000 S5,Ooo.000 $4.000,000 $2,000.000 $1,000,000 $0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ff ~ ~ ~ ff ~ 1~~m~~~1~1~1_1m1~2~~ ~~~~~~ Over the past fifteen years of audited financial records, the Wastewater DiVision expenses have Increased an average of 5.85% per year. The cost increases have been the result of several factors, such as regulatory requirements, chemicals, biosolids disposal, power, labor, workers compensation, etc... 4.3 The YVWD financIal Rate Projection Model The Yucaipa Valley Water District Financial Rate Projection Model has been created to provide a ten year projection to 2015 of revenues and expenses based on reliable information at this point In time. The District staff has taken'lnto consideration a wide varillty of variables as the basis for the model. These'variables include: growth rates; water and power rates/demands; and water demands. With any model. the further the projection Into the future, the less certainly exists. It is important to bear in mind that the practical use of the model should be Judged with reference to the structure of rates into the near future, This model Is not intended to be a long-lerm predIctive Instrument. Rather, it Is to be used as a 1001 to identify long-term financIal needs In order to establish a rate structure that prOVides Information to our customers about our long range plans and objectives. As such, this model will be used to establish a rate structure for the next five Page 37 April 2.9, 2005 JUN-05-2006 HON 04:36 PH FAX NO, P. 39/40 "-. .--- -~ -.. -- "ucaipa Valley Water District . Water, Wastewater and Recycled Water Rate AnalysIs "- {ears with a review conducted every two years. This will allow for smaller incremental changes n the rates rather than unplanned major fluctuations. ' 4.3.1 Future Condltlons and Prolected Parameters The first step In using the model is to provide certain statistIcal elements that are used as the basis for adJustlng costs over a ten year p.eriod, Each of the following elements Is included in the model together with a conservallve estlmate of the annual change from 2005 to 2015. . Growth Rates: .. Cost of Living - This projection ranged from 1.5% in 2005 to 2.0% In 2015. .. Potable Water Oemand - This projection remained fixed at 4% per year. ~ Supplemental Water Demand - This projection ranged from 3.0% in 2005 to 5.0% in 2015 ~ Percentage Change in Assessed Valuation - ThIs projection ranged from 10.0% In 2005 to 4.0% in 2015. .. Number of New eous - This projection consistently averaged 2.8% per year and resulted in 440 homes in 2005 to 580 homes In 2015. .. Employee Salaries and Benefits - This projection remained fixed at 4.0% per year. .. Administrative Services Expenses - This projection remained fIXed at 1.0% per year. ~ Operating Supplies - This projection remained fixed at 2.0% per year. ~ Maintenance and Repairs -ihis projectIon remained fixed at 2.0% per year. .. Insurance - This projection remained fixed at 2.0% per year. .. ,Professional Fees":' This projection remaIned fixed at 3.0% per year. .. Other Expenses - This projection remained .fixed at 1.5% per year; . Water & Power Rates: " .. E:nergy Charges - This projection remained fixed at 2.0% per year. · Demand Cl1arges vs. Consumption Charges: Tt1is factor changed from 15.0%.ln 2005 to 20.0% In 2015. 4.3.2 Water DivisIon Analvsis The revenue requirements for the water division have been based on property taxes, waleI' sales (potabte water commodIty oharges), supplemental water sales (supplemental water commodity charges) and fixed water servIce charges. The water division expenses are categorized as laborlbenefits, electrical power, waler purchases, filtration expenses, debt service coverage, and other operational costs. ' The District's finanoial model provides for a modest rate stabilization fund to smooth future rate' changes of less than 1.0% of waler revenues per year. This fund will SlOWly accumulate and be expended when needed and not exceed 5.0% of the annual water division revenue. The audited financial statements of June 30, 2004 expensed $1,348,780 of depreciation/amortization expenses for the water division, which Is expected to Significantly in(~rease with the completion of the YucaIpa Valley Regional Water Filtration Facility and related Improvements. The funding for depreciation has been limited to $900,000 in 2005 and is expected to attain reasonable compliance with GASB 34 requirements in 2012. flage 36 Apri129.2005 JUN-05-2006 110N 04:37 PN FAX NO, p, 40/40 '- ,_. -,-, _. ._~ l'ucalp;l Valley Water District . Naler, Wastewater and Recycled WElter Rate Analysis 4.3.3 Wastewater DivIsion Analvsis The revenue requirements for the water divIsion have been based on only two sources property taxes and fixed wastewater service charges. The wastewater dMslon expenses are categorized as laborlbenefils, electrical power, treatment expenses, debt service coverage, and other operatlonal costs. The Districl's financial model does not provide for a rate stabilization fund for the wastewater division at this lime. In the future, the 130ard may consider such a fund with a sImilar slow growth rate and a total fund accumulallon not to exceed 5,0% of the annual wastewater division revenue. The audited financial statements of June 30, 2004 expensed $1,904,820 of depreciation/amortization expenses for the wastewater division, which Is expected to ,significantly increase with the completion of the Wochholz Wastewater Treatment Facility improvements and the newly constructed Oak Valley Membrane 8ioreactor Facility. However, due to management's perceived financial constraints and rate sensitivity of our custqmers, the funding for depreciation has been limited to $0 in 2007, $1.65 million in 2010, and $2.9 million in 2015. While this level of depreciallon funding is not sufficlent to fully charge current customers for the use of the existing and proposed Infrastructure In a manner consistent wilh the requirements of GAS13 34, the District will be making an effort to more adequately fund wastewater division depreclallon In the future. 4.3.4 Recvcled Water Division Analvsis The revenue requirements for the recycled water division nave been based on the tecycled water commodity charge and fixed recycled water service charges. The recycled water division expenses are categorized as labor/benefits, water purchases, electrical power, and other operational costs. ' The District's financial model does not provide for a rate stabilization fund for the recycled water division at this lime. In the future, the Board may consider such a fund with a similar slow growth rale and a total fund accumulallon not to exceed 5.0% of the annual wastewater division revenue. The District anticipates fully funding the' depreciatlon of the newly completed recycled water facilities, . 4.3.5 Imoor/ant Elements Included and Not Included in Rate Analvsls A draft copy of Yucaipa VaHey Water DIstrict Resolutlon No. 13-2005 is provided as' Attachment "N'. It Is important to r!'lmember that the comprehensive rate study anticipates the retum of property taxes in Fiscal Year 2007 and does n9t Include the anticfpated cosls associated with th/~ construction of the brineline to San Bernardino. 'Page 39 April 29, 2005 JUN-mi-2006 NON 04: 04 PN FAX NO, p, 01 Resolution No. 37-2005 A Resolution of the Board of Directors of the Yucaipa Valley Water District Setting Rates Fees and Charges for Water, Wastewater and Recycled Water Service WHEREAS, the Yucaipa Valley Water District (the "District") Is a public agency of the ~,tate of Califomia organized and existing pursuant to the provisions of the County Water District Law of this State (Section 30000, et seq. of the Water Code); and WHEREAS, the Board of DIrectors.. have previously approved Resolution No. 13-2005 ~ietllng Rates, Fees and Charges for Water, Wastewater IiInd Recycled Water Service; and WHEREAS, the Board Intends to adopt Resolution 37-2005 updating the timing of ~ayment for development related fees and charges and changing the OO$t of supplemental vlater based on recent cost Increases adopted by the San Gorgonlo Pass Waler Agency. Table of Contents purpose and Implementation ................ ....... .n............., ............................ .... U' ......n.n .......3 1.1 purpose of Resolution........ .....:n..................... ........... 'u ..................... ......... .....:... 3 1.2. Implementation of Rates, Fees and Charge.s.......................................................3 :~. Development Related Fees, Charges and Deposits ........................................................3 2.1 Potable Water Development Impact Fees ................................................................3 2.2 Wastewater Development Impact Fees .............................,.................................3 2.3 Recycled Water Development Impact Fees ..........................,..............................3 2.3.1 Commercial Landscaping with Potable Water ..................:.......,...............3 2.3.2 Dual-Plumbed Communities I........ .............. ............................ .",................3 2.4 Application of Development Impact Fees Based on Development Type...................4 2.5 Payment of DevelPpment Related Rates, Fees and Charges...................................4 2.5.1 Fees and Charges Due Prior to Recordation .........................:......................4 2.5.2 Fees and Charges Due Prior to Bulldlng Permit .....:.....................................4 2.5.3 Fees and Charges Due Prior to Occupancy .................................................4 2.6 Development Impact Fees Fixed on Date Building Permits are Issued ....................4 3 Construction Related Fees and Charges.............................................:.,.........................5 3,1 SUb-Regional! Project Specific Master Plan.............................................................5 3.2 Plan Check 8ervices...........:...............:.....................................................................5 3.2.1 Residential, Commercial, Institutional, and Industrial Developments ............5 3.2.2 Storage Reservoirs .......... ................... ........... ......... ........................ ......................5 3.2.3 Wells, Pump Equipment and/or Boosters .....................................................5 3.2.4 Plan Rechecking ........... ................. ................. ....... ........................ ...............5 3,3 tnspection Services...... ........... .......... 'n ~..... ......... ........... 10..... ..... n.......... ......... ..............6 3.3.1 Residential, Commercial, Institutional, and Industrial Water & Wastewater FacUlties.......... n.' .......................... ................ ....................... ................. ..........6 3.3.2 New Water Service Unes and Wastewater Laterals .....................................6 3:3.3 Connecting to an existing Wastewater Lateral..............................................6 3.3.4 Water and Wastewater Pump Stations .........................................................6 3.3.5 Reinspection .... .....,. ..... ....... ...... ........ .......... ...... ,......,.. .... ". ...., ....... ...... .........6 3.3.6 Overtime Inspection Services ............................:..........................................6 Yl/WD Resolution No. 37.2005 . Page 1 JUN-)5-2006 MON 04:04 PN FAX NO. p, 02 3.4 Water and Wastewater Mainline Extension Charges................................................6 3.5. Water Service Line and Wastewater Lalerallnstallation Charges ............................7 3.6 Fire Hydrant and FIre Service Installation Charge .............................,......................7 3.7 Potable Water & Recycled Water Meter Installation Charge.....................................7 3.8 Construction Meter Deposit. Demand Charge and Consumption Charge.................7 3.8.1 Construction Meter Deposit ....,~""'....U..UH.........I....I.......nu.u................n........7 3.8.2 Dally Demand Charge ..................................................................................7 3.8.3 Potable Construction Water Consumption Charge .......................................7 3.8.4 Recycled Construction Water Consumption Charge.....................................7 4 Administrative Charges.........h...................................... .................. ................. .......................8 4.1 Credit Card I Check Card Payment Surcharge ..................................................:......8 4.2 Delinquent Payment Charge ....... ........... ........... ....... ................................. ...... .............8 4.3 Retumed Check Charge ............................................................................,.............8 4.4 Disconnection and ReconneCUon Charge......................................................,..........8 4.5 Unauthorized Use ofWatsr & Wastewater Servlces.................................................8 4.~ Property Uens.............................. .......a..... .............................. ..................................8 4.7 Security Depo~it.....h......n..ua...... ............................. ................ ....... ........ ........... ..........8 5 Water and Recycled Water, Charges ..........:.........................................................................9 5.1 Water and Recycled Water Service Charge .........................................,.....................9 5.1,1 Multiple Residential Water Service Charge...................................................9 5.2 Potable Wamr Commodity Charge .........................................................................,.9 . 5.2.1 Multiple Residential Water Commodity Charge ....................,.......................9 5.3 Recycled Water Commodity Charge.................................. ...............,.....................1 0 5.4 Supplemental WaterComniodity Charge ...............................................................10 5.5 Meter Te:s:t Charge...... ......... ....If............... ...,....... ................ ....................................10 5.6 Fire Service Demand Charge ..................................,...............;...............................10 5.7 Fire Rows Measurements and Reports..................................................................10 5.8 Water Meter Reactivation/Conversion Charge........................................................10 :; , Wastewater Charges ....................... ........a..... ......................... to, .................14 ........................11 6.1' Wastewater Service Charge .................................:.................................................11 6.1.1 f:,1ultlple Residential Wastewater Servic;e Charge ...................................:...11 6.2 Wastewater Septage ReceMng Charge.................................................................11 6.2.1 Deposit and Annual Pennit Fee..................................................................11 6.2.2 Sewage Disposal Fee...................................................................,.............11 6.3 Wastewater Pretreatment Fees ... .........................,..................................................12 6.4 Commercial Wastewater Service Charge...............................................................12 6.4.1 Water Meter Requirement ..........................................................................12 Table 1 Potable Water & Recycled Water Facilities Impact fee .....................................13 Table 2 Wastewater Facilities Impact Fee ......................................................................14 Table 3 Application of Development Impact Fees Based on the Type of Developmenl..15 Commercial Rate Factors ..................................................................................16 Table 4 YVWD Resolution No. 37.2005 . Page 2 JUN-mi-2006 110N 04: 04 PN FAX NO. P. 03 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Yucaipa Valley Water District, as follows: 'I. Purpose and Implementation: 1.1 Pumose of Resolution: The fees and charges set forth herein are for the purpose of meeting all of the District's water, wastewater and recycled water operating expenses, including but not limited to: distribution system maintenance; collection system maintenance; purchase of vehicles and equipment; pump maintenance; well maintenance; groundwater management; vehicle and equipment maintenance; facility maintenance; regulatory compliance; permitting compliance: staffing; purchase of supplemental water; water filtration; wastewater treatment; material costs; administrative costs; long-term debt repayment; and reserve fund needs. Upon the effective date below, the contents of this resolution shall replace Resolution No, 13-2005. 1.2 Imolementatlon of Rates. Fees and Charoes: The water, wastewater and recycled water related rates, fees and charges shall be effective based on the date(s) provided herein. Implementation of rate changes will occur on the effective date regardless of the service period. . :!. Development Related Fees, Charges and Deposits 2.1 Potable Water Oevelooment Impact Fees: The potable water development Impact . fee shall be applicable to .all customer classes, Including' but not limited to domestic, commercial, Industrial, Institutional. and potable agricultural water service, excepting fire services. and shall be based on the EquIvalent Dwelling Units as provided in Table 1. The water development Impact fee components are provided in Table 2. 2.2 Wastewater Development Impact Fees: The wastewater development Impact fee is applicable to 'all customer classes, InClUding but not limited to domestic, commercial and industrial users and shall be based on the Equivalent DWelling Units as provided In Table 1. The wastewater development impact fee components are provided in Table.2. 2.3 Recvcled Water Development Imoact Fees: The recycled water development impact fee shall be applicable to all customer classes for the purpose of providing a recycled water source for irrigation purposes and shall be based on meter size/type and number of units as provIded In Table 1. 2.3,1 Commercial Landscaolno with Potable Water: The Recycled Water Development Impact Fee shall apply to potable irrigatlon water meters when required for commercial developments only if the landscape irrigation system is installed consistent with the District's Recycled Water Rules and Regulations. 2.3.2 Dual-Plumbed Communities: In dual-plumbed communiiies, this fee may be waived at the sole discretion of the Board of Directors when it can be NWD Reoolulion No. 37-2005 Page 3 JUN-05-2006 MON 04:04 PN FAX NO, P. 04 clearly demonstrated that the recycled water system components such as recycled water storage. and recycled water' conveyance are also constructed. . 2.4 Aoollcation of Development Imoact Fees Based on Development Tvpe: . Development Impact Fees shall be charged a minimum of one Equivalent Dwelling Unit (EDU) per each dwelllng unit for each service providad by the Pistrlcl The developer shall pay all water, wastewater. and recycled water development impact fees based on the fee in effect on the date the building permit is issued to the property owner or developer. Table 3 outlines the manner in whIch the development impact fees shall be applied to new developments. 2.5 Payment of Develol?ment Related Rates. Fees and Charges: The payment of development related retes, fees and charges are contained in the most recently adopted Resolutlon stating Rates, Fees and Charges for Water, Wastewater and Recycled Water Service and generally occur as pre-paid deposIts prior to completing a task or providing servIce. The following fees are required payable during the' development planning and approval process as follows. 2.5.1 Fees and Charoes Due Prior to Recordation: Prior to recordation. the District Will require the following: . Digital map of the proposed parcels; o 100% Performance bond; o 100% MateriaVLabor bOnd; o 100% MaIntenance bond;' O' Preliminary Acco\lnt EGtablishment Charge'" $25 per parCel 2.5.2 Fees and CI1~raes Due Prioe to Buildlna Permit: TI1~ following charges are due payable prior to the issuance of a building permit: · Wastewater Collection System property Access Charge; . Water & Recycled Water Distribution System Property Access Charges; o Water, Wastewater and Recycled Water Development Impact Fees. 2.5.3 Fees and Charaes Due Prior to Occuoancv: Any and all outstanding invoices relatecl to the development shall be paid prior to releasing any'lot or home for occupancy. 2.6 Development Impact Fees fixed on Date BuildinCl Permits are Issued:' All development-related rates. fees and charges shall be fixed at the amounts in effect when the developer or property owner has been issued a building permit(s) for the construction of buildings. In the event that development Impact fees are prepaid to the District prior to the Issuance of the building permit and the amount prepaid or deposited is less than the actual amount In effect at the time that the building permit has been Issued, then the developer or property owner shall pay the difference between the prepaid amount or deposit and the actual amount of the development impact fee In effect on thel date the building permit is issued. In the event that the actual development impact fee in effect on the date that the building permit Is issued is less than the prepaid amount or deposit, then the District shall refund the difference to the developer or property owner. YVWD Resolulion No. 37-2005 Page 4 JUN-IJ5-2006 NON 04: 05 PN FAX NO, p, 05 3. Construction Related Fees, Charges and Deposits 3.1 Sub-Reaional / proiect Soecific Master ~Ian: The District shall collect a deposit for the purpose of conducting a sub-reglonal or project specific master plan to evaluate water, wastewater and recycled water service requirements. This service shall be required of projects In areas wIth insufficient service capacity or within areas where water, wastElwater or recycled water services do not currently exist. If the actual cost of thIs service Is greater than the deposit provided, then an additional deposit shall be required prior to completing the written evaluatlon. At the conclusion of the evaluation, the District will provide a refund equal to the amount of deposited funds which were not utilized by the District, or apply the difference to plan check services. If at the conclusion of the evaluation, the Dlsmct has exhausted all depositEid funds and a balance due remains. then the property owner or developer shall remit that" balance due immediately upon receipt of an invoice from the District. 3.2 Plan Check Services: The District shall collect a plan check deposit for the purpose of plan checl5.lng services by the District staff or a representative aut/lOrfzed by the District. If the actual cost of plan check services Is greater than the deposit applied, the District will require an additional deposit be made prior to continuing plan cheCking services. At the conclusion of the plan check review process, the DistrIct will provide a refund equal to the amount of deposited funds which were not utilized by the District for plan checkIng servIces, or apply the difference to future Inspection -services: If at the conclusion of the evaluation, the DIstrict has exhausted all deposited funds and a balance due 'remains, then the property OWner or developer shall remit that balance due immediately upon receipt of an invoice from the District, ' 3.2.1 Residential. commercial, Institutional. and ifldustrfal develooments: For development related projec;\s, the plan check deposit shall be 3% of the estimated water and wastewater construction value. The estimated construction value shall lle reviewed and approved by the District prior to recordation. 3.2.2 Storace Reservoirs: For water storage reservoirs. the plan check deposit shall be 2% of the estimated construction cost or $10.000.00 which ever ;s greater. 3.2.3 Wells. Pump Equioment and/or Boosters: For wClter and wastewater related pumping equipment the plan checl< deposit shall be 2% of the estimated construction cost or $10,000.00 which ever is greater, ' 3.2.4 Plan Recheckino: The District reqUires a resubmittal of all construction plans every year after being initially approved. Rechecking of plans after plans have been approved by the District shall be performed on a cost basis with ,a deposit paidprior to InitiaUng this serviCe. The District will not approve the plans until all unpaid plan checking service charges have been paid. 'fVWD Resolution No. 37.2OQ5 Page 5 JUN-(5-200B l10N 04:05 PN FAX NO, p, 06 3.3 Insoectlon SeNlces: The District requires an inspection deposit for the purpose of conducting inspection services by the District starr or a representative authorized by the District. If the actual. cost of the Inspection servlce$ provided by the District is greater than the deposit appHed, the District will require an additional deposit be made prior to continuing Insp9ction services. At the conclusion of the project, the District will provide a refund equal to the amount of deposited funds which were not utilized by the Dlslfict for inspection sllIVices. If at the conclusion of the evaluation, the District has exhausted all deposited funds and a balance due remains, then the property owner or developer. shall remit that balance due immediately upon receipt of an Invoice from the District. 3.3,1 Residential. CommerCial, Inslltutional and Indust(lal Weter & Wastewater Facilities:' For installation of residential, commercial, institutlonal, and industrial water afld wastewater facnities, a deposit in the amount equal to seven percent (7.0%) of the estimated construction cost shall be provided to the District prior to recordation. 3,3.2 New Water Service lines and Wastewater Laterals: For water servlce Hnes and wastewater laterals constructed by contractors between the public waterfwastewater rnalnUne and the property line, the owner.s~1I provide a $500.00 deposit and be responsible for the actual cost of inspection services. 3.3.3 ccinnectlna to an Existina Wastewater Lateral: For verlfying a proper sewer lateral connection. to an existing sewer lateral, the owner shall provide a $180,00 flat fee for the cost of Inspection services, , 3.3.4 Water and Wastewater Pumo stations: A deposlt for the inspection of water and wastewater pump stations shall be 7.0% of the estimated construction cost. 3.3.5 Reinsoection: Where relnspection is required due 10 test failures, damage, litigation or" other causes beyond normal construction, the cost of relnspectlon will be paid by owner at the actual cost Incurred. 3.3.6 Overtime Inspection Services: Any overtime inspection provided, Including 'saturday, holiday, evening, and night will be provided If Inspectors are available and 72 hour advance notification is given to the District All costs for overtime Inspection shall be paid by owner. . 3.4 Water and Wasf:@.water Mainline Extension Charne$: When a water or wastewater mainline Is extended past or to properties oat contributing toward the cost of the mainline, and those properties have not paid a direct assessment or its equivalent, the property owner or developer who paid for the mainline extension shall be reimbursed, pursuant to 'the acllve reimbursement agreement for a portion of the cost of such extension. The amount of reimbursement shall not exceed the cast of an equal length and depth of a-inch diameter mainline, as determined by the General Manager, or deSignee. In the avent an active re.imbursement agreement does not exist, the DIstrict shall be paid the mainline extension charges. . . Page 6 . NWP Resolution No. 37-2005 JUN-(S-2006 MON 04:05 PN FAX NO, P. 07 3.5 Water Service Une and Wastewater I..ateral Installation Charaes: Tha cost associated With the Installation of a water service line (potable and non-potSble), fire service line, and/or a wastewater laleral shan be ~he actual cost of all labor, material, and equipment charges, plus employee benefits, overhead and administrative surcharges per District RB&olution, A deposit shall be made with the District equal to the estimated cost of Installation. as determined by the District, prior to initiating installation. FInal job costs will be determined and the customer will be billed or refunded the difference in cost 3.6 Fire Hvdrant and Fire SIlC{)CS Installation Charos: The cost associated with the . installation of a fire liydrant and/or fire service shall be the actual cost of all labor. material, and equipment charges, plUS employee benefits. overhead and administrative surcharges per District Resolution. A deposit shall be made with the District equal to the estimated cost of installation, as determIned by the District. prior to inltraling installation. Final job costs will be determined and the customer will be billed or refunded the difference In cosl 3.7 Potable Water & Recvcl~ Water Meter Installation Charae: The cost associated with the Installation of a %" water meter shall be $325 Qer meter and $375 fOl" a 1" water meter. The cost associated with the Installation of larger water meters shalt be the actual cost of all labor, materIal, and equipment charges, plus employes benefits, overhead and eclmlnlstrallve surcharges per District Resolution with a deposit collected prior to Installation. 3.8 .Constructlon Meter Deposit. Demand Charae and Consumotlon Charq~: 3.8.1 ConstriJctfon Meler Deooslt: . A construction meter deposit of $1,500 per mpter shall be paId prior to the District installing the temporary ~nstrucllon meter at a fire hydrant as determined by the District. . 3.8.2 Dallv Demand Charqe: A service charge of $2.30 per calendar day shall be charged for the' rental and fixed costs associated with this service. . 3.8.3 Potable ConstructIon Water ConsumPtion Cherae; Potable water used for construction pUrposes is considered to be interruptible and charged at a rata per thousand gallons equal to 1.2 times the highest tier of potable water . charged to District customers, 3.8.4 Recvcled Construction Water Consumction Charae: Recycled water used for construction purposes is considered to be reliable and less subject to InterruptJons. This water shall be charged at a rate per thousand gallons equal to 1.2 times the highest tier of recycled water charged to District customers. YVWD ResolulJon No. 37.2005 Pege 7 JUN-OE-2006 NON 04:06 PN FAX NO, p, 08 4. Administrative Charges 4.1 Credit Card I Check Card Pavment Surcharoe: A$1.75 charge shall be added to all payment transactions completed by credit card or check card. 4.2 Delinauent Payment CharaB:. The District shall charge a basic penalty of ten percent (10%) of the amount of each service bIlling not paid on time, plus an additional penalty of one-half of one percent (0.5%) per month on each late billing and its associated basic penalty, 4.3 Returned Check Charoe: The charge for a returned check shall be $35.00 per item. 4.4 Disconnection and Reconnection Charae: For potable water and recycled water service, the disconnection charge Is hereby established at a rate of $35.00 per occurrence. A water reconnection charge of $40:00 will be oharged par occurrence with the payment of all delInquent fees and charges If received by 3:00 p.m. on a regular business day. A reoonnectlon charge of $50.00 will be charged per Occurrence when the payment of all delinquent fees and charges Is made after 3:00 p.m. on a regular business day and the customer requests reconnection of water service between the hours of 4:00 p.m. and 8:00 a.m. or on weekends/holidays. The disconnection and r'econnection charge associated with wastewater service Is established at cost plus 15%. 4.5 Unauthorized Use of Water & Wastewater Services: The unauthorized use of water and/or wastewater service shall be chai'ged to any person, organli!=ation, corporation, or agency for each unauthorized use of Plstrict water or for tampering in any manner with any meter belonging to the District. The unauthorized use of water charge Is hereby established at a rate of $750.00, or $65 per day, whichever is greater. 4.6 ProoertY Liens: A delinquent utility account that results in a property tax lien shall be charged $100 per lien per property,for administrative and processing costs. 4.7 Security Deposit: A security deposit charge of $60.00 will be assessed on aU accounts that have either of the following: (1) water service disconnected for non. payment; (2) a property lien for delinquent collections; or (3) a retumed check for insufficient funds. The security deposit charge will be credited to the account after eighteen (18) months with no late charges or upon closIng the account. NWD Resolution No. 37.2005 Page 8 JUN-(15-2006 NON 04: 06 PN FAX NO, p, 09 5. Water and Recycled Water Charges 5,1 '!:Jater and Recvcled Water Service Charae; The daily water service charge shall be applied to the greater of (1) meter sIze or (2) number of Equivalent OwelUng Units served. This charge shall be applicable to potable water and recycled water users. effective EffectIve Eff8c:tIve EffeCUve EffQCtIVe Wllfar Service Charge 6/1/05 1/1/06 1N/01 1/1/08 1/1/09 Sarvtce Cha<ga per EOU $O.2691day $O.299IOOy $O.309lday $O.319/day $O.329/day WeJ& Meter BallElll Chwge: ~"Wa~r MeIer 1.00 EOU $O.289/day $O.2ll9Jday $O.S09/day $O.319Iday $O.32ll1day 1" Water Meter 1.67 EDU $O,4831day $OA991day $C.B16/day $O,533Iday $O.5491day 1%'WalurMelar3.33 EOU $O.962/day $0.996/clay $1.0291day $1.062Jday $1.0961day TWalerMeler 5.33EDU $1.5401day $1.5941OOy $1.641Iday $1.700lday $1.754/day 3" WalBr Meter 10,00 EDU ~2.8901day $2.990/day $3.090/day $3.1S0/clay $3.290/day 4'WaterMe~r 16.61 EDU $4.S1S/daY $4.984/d8V $5.151/day $5.3161day $5A64Iday 6" Water Meter 33.33 EDU $9.632/d8)' $9,9661day $10.29/day $10.63/day $10.97/day S"Water Meter 53.33 EDU $15.41Idav $15.95Idav $16.47/dav $17.01/dav $17.55ldav 5.1.1 Multlole Residential Water Service Charoe: Multiple Residential Dwellings of more than 30 dwelling units on the same parcel constructed prior to May 1, 2005 shall be calculated based on the formula provided i(l Section 5.1 multiplied by the MUltiple Residential Water Service Charge Factor of 0.80 to calculate the Multiple Residential Water Service Charge. 5.2 Potable Water CommodilV Charas: The water commodity charge rate Is the charge per one thousand gallons (kgal) for. all water registered by the custome(s water meter in a monthly billing cycle and is herein established as follows: Potable Water EffoctiVG EffoctlvlI Effective Effilctlvlt Effoctlve ConsumptIon tkgal) 6/1/05 111/06 1/1/01 1/1/08 1/1/09 1-15 Billing Units $1.125 $1.218 $1.279 $1.349 $1.429 16 - 60 Bllllng Units $1.515 $1.638 $1,719 $1.809 $1.919 61 - 100 Billing Units $1.655 $1.788 $1.679 $1.079 $2.099 101 am:! t:lreater Billinp Units $1.925 $2.078 $2.179 $2.2B9 $2.429 5.2.1 MUltjple ResIdential Water .CommodilV Charoe: Multiple Residential Dwellings of more than 30 dwelling units on the same parcel constructed prior to May 1, 2005 shall be calculated based on the formula provided In Section 5,2 multiplied by the Multiple Residential Water Service Ch~rge Factor below to calculate the Multiple Residential Water Commodity Charge. . Eff9ctlve Oata !:lfactlVa 6/1105 EffectIVe 011/05 Effective 1/1108 EffectIve 3/1/06 Multiple Resldentlal W;star Commodlty Charge Factor 0.250 0.325 0.400 0.475 Effective Date Effective SI1106 Effective 9/1106 l':1Nctlve 1/1101 Effective 3111C1T Multiple RaaldenUal Wawr CommodIty Charge Factor O.5!50 0.625 0.700 0.600 YVWD Resolution No. 37.2005 Page 9 JUN-0:-2006 MON 04:06 PN FAX NO, p, 10 5.3 Recvcled Water Commodity Charae: The recycled water (non-potable) commodity charge rate is the charge per one thousand gallons (kgat) for all recycled (non- potable) water registered by the customer's recycled (non-potable) water meter in a monthly billing cycle and is herein estabnshed as follows: Effoctlve Pele Effective 6/1105 Effective 1/1/06 'Effective 1/1/07 Effective 1/1108 Effective 1/1/09 Effective 1/1110 Supplemental Waler Oonoumptlon (kgoO $0.909 $0.979 $1.029 $1.085 $1.155 $1.175 Effective Date Effeclive 1/1111 Effective 111112 EffaclivB 111/13 Effective 1/1/14 Effective 1/1116 Supplomental Water Consumption lkllal) $1.235 $1.265 $1.305 $1.375 $1.425 5.4 Supplemental Water Commodilv Chame: The supplemental water commodity charge rate is the charge per one thousand gallons (kgal) of potable water consumption registered by the customer's water meter in a monthly billing cycle and is hereIn established as follows: Effective OlltEl Effective 6/1/05 Effective 1/1/06 Effective 1/1107 Effective 1/1108 Effeetive 1/1/09 Effectjvs 111/10 Effectlve 1/1/11 Supplemental Water Consumption (legal) $0.018 $0.034' $0,119 $0.160 $0.206 $0.212 $0.219 E!ffectlve Date Effective 1/1/12 Effectlve 1/1/13 Effectlve 1/1114 Effadlve 1/1/15 Effectlve1/1116 EffeclivB 1/m7 Effllctive1/1118 Supplemental Wator ConsumpUon (kgol) $0.225 $0.232 $0.239 $0.246 $0.254 $0.261 $0.260 5.5 Meter 1'est Charge: The cost associated with testing water meters shall be not less than the actual cost Incurred by the District. 5.6 Fire Service Demand Charne: The fire service $tandby charge shall be a 'daily charge per Inch diameter of the main fire line detector check valve Installed to the premises as provided below: Fire Sorvlce Pemand Charge Charas per Inch dIameter Effective 1/1/0T SO.080/day .Effective 6/1105 So.o751dav Elfectlve 1/1/06 $O.077/dav Effective 111/08 $o.o821dav Effective 1/1/09 ~O.0841dev Water usage through the bypass meter is billed at two times the highest potable water rate. 5.7 Fire Flow Measurements and Reoorts: The charge for providing results of each fire flow test shall be $75.00. The charge must be paid prior to the District providing any tire flow data to the requesting party. ' 5.8 Water Meter ReactlvationlConvefllion Charae: Prior to converting a water meter that has been locked off by the District for greater than one year within the previous five years, the customer requesting meter conversIon to one or more smaller water meters shall be required to pay the current water/recycled water service charge multiplied by the number of days the meter was locked off. Y'l'NO Resolution No. 37.2005 Page 10 JUN-O!i-200B MON 04: 07 PM FAX NO, p, 11 8. Wastewater Charges 6.1 Wastew'lter Service Charae: A dally wastewater service charge shall apply to all customers' based on the number of equivalent dwelling units. E:ffeCllve Date Etfectlve 6/1/05 Effectlve 9/1/05 Etrectlva 1/1/06 EffeolIve 311/0B Effective 6/1/OB Effective 0/1/06 Effecllva 111/07 ElfeclJve 311/07 Effecttve 6/1107 Effective 9/1/07 Wu!ewater Service Charge DaVv Co51 per !::DU $0.771/day $0.8001c1ay $0.6291day $0.B581day $0.867fday $0.91&'day , $0.9451day $0.974/day $1.003lday $1.0321dsv Wastewater Servloo Charge DailY cost per EDU $1.061/day $1,0901day $1.119/day $1.1481day $1.177/day $1.206/day $1,2351day $1.264fday $1.240fday $1.2/l4/dav Effactlve Pate Effective 1/1/08 Effective 311fOB Effective 6/1/08 Effedlve Of1/OB EffBctlve iii/DO Effective 311/09 EffBctlve 6/1109 Effective 9/1/00 Effecllve 1f1/10 Effecllve 311/10 6.1.1 Multiple Residential Wastewater Service Charoe: Multiple Residential Dwellings of more than 30 dwelling units on the same parcel constructed prior to May 1. 2005 shall be calclllated based on the formula provided in Section 6.1 multiplied by.the Multiple Residential Wastewater Service Charge Factor proVIded in' the folloWing table to calculate the Multiple Residential Wastewater Service Charge. EffectlveDm. Effective 6/1/05 Effecllve 1/1/06 Effectlve 1/1/07 Multiple Residential W'loStawater S4rvlce Chame Fac:tor 0.825 0.845 0.866 MUltiple Rssldentlat W8lIlGwater Service Chame Faclor 0.B85 0.905 0.925 Effective Ollie Effective 1/1f08 Effective 1/1/09 EffectIve 1/1/10 , 6.2 Wastewater Sactaoe Recelvlng Charoe: A wastewater seplage receIvIng charge is herein estabrlShed 3S follows: 6.2.1. Decoslt and Annual Permit Fee: Septic tank pumpers shall post with the District a $500.00 deposit and will be. charged an annual permit fee per vehicle as provided in Section 6.4 below, 6.2.2 Sewaae Disoosal FeEl: Septic tank pumpers will be charged aJ the rate of four cents ($0.04) per gallon for saplage originating from within the Yucaipa Valley Water District Sewer boundaries., For septage pumpings originating outside the Dismct's sewer boundary, 'the charge is established at eight cents ($0.08) per gallon. In all cases, the minimum charge shall be the total rated lank capacity of the W~. ' YVWD Resolution No. 37-2005 Page 11 JUN-05-2006 MON 04:07 PM FAX NO, p, 12 6.3 Wastewater Pretreatment Fees: The District has adopted an ordInance which regulates the discharge of non-domestlc wastewater Into the sewerage system of the District in accordance wlth General Pretreatment Regulations (40 CFR Part 403). In order 10' enforce the requirements of the District's Industrial Wastewater Pretreatment Ordinance, it Is neCessary to issue fNe separate classes of Industrial User Permits and charges as follows: PermIt Effactllla Effactlve Elfecllve Class Industrial U$er type 5/1/05 111/07 1/1109 I Fedaml CetegQ1lta1 $450.00 plus $475.00 pIUS $500.00 plus sampUro CQsls sampang cosls sampUng costs II SIgnificant User , $460.00 plus $475.00 plus $500.00 plus sampling costs sampRng costs sampling costs III No....sIgnltlcanl User $240.00 plus $255,00 plus $2.70,00 plus sampling COsb sampang costs sampang costs IV Temporary User $180.00 plus $1GO.00 piuS $200.00 plus sampling costs sampling costs sampling costs V Sepias" Waste Hauler $150.00 per $160.00 per $170.00 per vehicla vehicle vehIcle 6.4 Commercial Wastewater Servl(le Charae; A daily wastewater service charge shall apply to all commercial, Industrial., and institutional customers based on the following formula and rate factors with a minimum charge based on the number of eous oharged pursuant to Sectlon 6.1: CommercIal Wastewater Service Charge Wastewater :: Service Charge x (Section 6.1) Commercial Rate Factor (see Table 4) x Consumption (kgal) A list of Commercial Rate Factors is provlded In'Table 4. 6.4.1 Water Meter Requirement: Each commercial unit shall be required to install a separate water meter In order to properly assign a commercial wastewater charge to the business. This Resolution shall be effective as of December 22, 2005. YUCAIPA VAU.E:YWATER DISTRICT ,ay~ A~~ ~ If! CE GR.4iLUND., President of the Soard of DIrectors :3 YVWD Resolution No. 37.2005 Pass 12 JUN-D5-20Cl6 1'101'1 04: 07 PN FAX NO, ~ If 11 0. e - ~ ;E - 'u &! L- "r"'.$ S~ .c"C ~~ u g 0:: ~ L- oS ~ CI) :c .f1 o 0.. "1J ~ll ~]*~m ~~~~~~~~ON__~m~Q~~m~~m 1~~~~~!~~~~~~~~~~~~~~~i~2~~~~ g-M r~;~N~N~V~ ~u. ~l ~i~~~~~~~~~~~~~~ffi~~l~~~~~~~i~ i~~~~~~~~~~~~~~~~~~~~~~~~~ijm$ If -~ c:C: ~~~~~~~~~~a~B.~~~~~~~~~~~~~~~~ ~~w__~~~~~OQ_~~O~~~_~MOO~~~M~ 0'''= or- ~ or 't- ~ (\f,...., C') V) "Cf' ~ U) <0 to t'o. C) (\I 'q" <0 UI ... -........... ~ , Il~ " , ' ~ia~~~22l5~~~~~2g~~~~~g2g~~~8~g ~a~ . N~~M~~~~~~_~~~NN ~~ IJ~~g~~~gg8~@8gB~~~g~~l~~~~~~ il ~_~~~~ID~~~~~~~~NNN~~~ ell ~ ,~~ "6:10- _:g ~ :e :E'!i! ;.- F :;, ell Q) ~ Q)1Il<l)d> ~~1- B- =- E- ~~~ '~~ ~:e ~i~i ~~~lni;l~I]]~]~~~~~~g~~~~~~~ ~ .m ~ ~ l;U 0. tn S 8. ~ &. - - .E 1- - i- -- ~ CD U) U';J U) &~ot.J~E uE - ~~ s~~~~ ~'Q~...oJ.81.~I~. ~m mmUO-u"n- . ~~QUUO ~QO()()O 00 ou v~t.J ~~~~~N~MMh~~~~~~~~~~~~~~~~ " 8 i c::: S t:: 'm :E " <: III 2' ~ 'cO ~'t1:::s oil <( ~:!:~ ~~< SIIl,j; g ~'~ C':::ll'l igc -2~ ~.?l~ I!!l.s j;:~ s ~lt .,~fi ~. ~ -s ~~~ :<:fe <('" ~~i <(~e ;;;~j :E::i!1!1 iil-" ";$~i5 ~~'5 e ;Ie. ol<16, ...:.i'i Ill",!! 'lJ 13 t~i ~~5 ~~~ ~~1!1 iU 8- '3::;: Be! .~.~ E ~~~ C)I"~~ N"'e ~~8 ~~~ rii t:!_N"; o z p, 13 .., .,... '" lll' 0.. In 8 <:< .... '" o :z <= ~ '" <1l rr: ~ JUN-05-2006 NON 04:08 PN FAX NO. p, 14 ... ~ oil "C II) C. ~ .~ <:: l 8 '0 <11 ~ a ~ III .-:: ;: ~ ~0>..,?B ~ 8l .:g '" <> "is. ~ ... Cl> ~. i~~ ~i~C'\t ~ lii Cl> \I'> ...~ .... ~i .... t.) 'l5 '" lli z :; .... ..., '". 1) :; ..., t:: III fI) ~ 0>:>, S 0 E- c [Q II)gj ~ ~ *~ ~ ~ 2l~ J ] <:~ at 100><'>18 is .- II) .!!.! :6" _,0 0 3~ u. ....i;:<'i eN II>- ~~ "''l1 l t~ oW E:s U + ~~ I'lS oX> I 2:5 Q. .... e N ,2l ~ c. ;;; ",= - ~i e.E: m= Nm .!i 6~ !~ &: 0>= 'i 16e "l" -- ~j .... ..Q .- ~ CD u 21;; ~Jf ~\l! '" .!l ~,g .. ,:; Ql , g>- c.. ... ~ ~ il -~ .2 e~ Q) mg J! :6~ iU .c: l~ e(.) 1:: 0 e a.. ~ '0,- ~ 8~ OJ ~o ;$ Q).21 S iii~ Cog. TIE ~~ a. ~g III - ~ ~e .e -Q) tiS J!S~ ~~ ~ ..-s ~ <11 s'- .s OJ.a:! '" 002 BJ~j 15'fi C ('l= me:; l~ i ~~ i!";: J~~~ 1l~ .- tV II! 8! 8 ~~ ~ 15lil c._ 11 <( CD ~~ j'll ~.re e- filii i ZI_ ~ ~~' <ll ~'i :g =:<'8 "- (.) c~ 0 '1 ~ :6-- ~ 'it '" 8- . {"gj 0 ~ e z c:: a. ,g <( In e~ " ~ ~ <5 c...2 ~ 0 J f ~~ c II a ~ t.) z JUN-05-2006 NON 04:08 PM FAX NO, p, 15 Table 3 Application of Development Impact Fees Based on the Type of Development Development Type Typical Single Family Residential Home Apartmen1s, Hotels and Motele with a Master Meter(s) Individually Owned Duplexes / Condominiums Irrigation I AQnculture Commercial Development Meter Sl;e and WllStewater Late",1 Each unltlo be served with at least a 0/." water meter and 4" wastewater leteral Customer's engineer to recommend melar size based on unit <Xlunt. total number of fixture units and the reoommended meter operating capacity as shown In Table 1 Each unit to be served with at least a y." water meter and 4" sewer lateral Own81's engineer to submlt l1Ue 22 Engineering Report With appropriala meter sizing' Customer's Engineer to recommend meter sl2e based on unit CQun~ total number of fixture unlls and the reoommended mater operating capaclly as shawn In Table 1 WalDr & Racyclod Water DeveloPlllllntlmpl\Ct Fee Development Impact Fee will be a minimum of one EDU With additional development Impact fees cha~ed based on Increased meter size. Development Impact Fee wlU be based on a mlnllllllm cha~e per each EDu with addlllonal development Impact fees charged based on Increased meter size. Developm!lnt Impact Fee Will be based on the number of EDU's with addltfonal development Impact fees chiuged based on I_ed meter size. Developll\ent Impact Fee will be determined by meter size Development Impact Fee Will be based on the number of EDUs with addlllonel development Impact fees charged based on Inoreased meter size. Wastewalar Development Impact F8Il Development Impact F8Il will be a minimum of one EOU. Development Impact Fee win be based on the mimberof EDU's Development Impact Fee wiD be based on the number of EDU's Not Applicable Deve(opment Impact Fee will be based an !he number of EDU's YVWO Resolution No, 37-2005 - page 16 JUN-)5-2006 NON 04:09 PN FAX NO. p, 16 Table 4 Commercial Rate Factors BOO (malll 20 180 150 1150 1000 200 130 150 340 250 500 310 450 670 150 800 290 130 1,000 830 200 800 CommercIal Rate Factolll CommercIal Rata Factors S8 (malll 150 280 150 1250 600 200 100 160 316 100 600 120 ,240 880 110 800 290 80 600' 510 200 800 without 8 separate landscape meter 2.08 3.67 2.78 14,44 10.00 3.33 2.39 2.78 4.75 3.06 7.22 3,50 4.94 8.61 2,!?6 10.00 4.~ 2.28 10.00 8.56 3.33 10.00 with a separate landsCllpe metar 2,74 4.89 '3,70 19.26 13,33 4.44 3.19 3.70 6.33 4.07 9.63 4.67 6.59 11.48 3.41 13.33 5,78 3.04 13.33 11.41 4.44 13.33 T~ of Business Automobile. Car Wash Automobile. Repair Shop' Automobile. Gas SlaUon ' Aulom()bile. Steam Cleaning Bakery Bar wllpout Dlnlna Fllclllty Colleg!3 Department and Retail Stores EMl..E.qod Hospilal & Convalescent Hotel with DIning Facili!y ~yiJ.!1lQ.ut Dining FaCility Laundromat. Commercial La\!.ndromat - Industrial Laundromat. Local Mortuary Other Commarclal Profe8Slonal OffIce ~rant Restaurant with Mixed Retail ~!9l! SuperrnarkOlt YVW() Resolutlon No. 37-2005 Page 16 JUN-)5-2006 MON 04:09 PM FAX NO. p, 17 STATE OF CALIFORNIA COUNTIES OF RIVERSIDE AND SAN BE:RNARDlNO ) loSS ) ) I, Joseph B. Zoba, Secretary of the Board of Directors of the Yucaipa Valley Wa~er Distrlct, California, do hereby certify that the foregoing resolution being Resolution No. 37-2005 was duly passed, approved arid adopted by said Board, approved and signed by the President, and attested by the Secretary all at the Regul~.r Me~tin9 and Public Hearing held on the 21lJt day of December 2005, and that the same was passed and adopted by the following vote: AYES: NOES: ABSENT: Directors Wochholz, Bangle, Granlund, Bogh and Shalhoub None None ABSTAIN: None Executed this 22nd day of December 2005 at Yucaipa, ~aJjfornia. of the Yucaipa V ey Istrlct and of the Board ors thereof (SEAL) "r\nlll\ East Valley t:.' " II Water District VlEMORANDUM June 9, 2006 To: Board of Directors d Robert Martin r-r 2006/2007 Budget Prom: Subject: On May 16th the Board conducted its annual Budget Workshop to review the District's Draft Budget for next year. The overall Budget package contained a number of proposals for staffing increases and water and sewer rate adjustments. I have taken comments from the Board members and completed some additional updates in preparing this new Budget proposal for your consideration The revenue analyses and projections are based upon a series of rate adjustments, which. the Board must still consider. Specifically, these new rate assumptions are as follows: Water Consumption Charge (Water Rate) Residential Sewer Charge Commercial Sewer Charge - $!. 06/hcf ($ O. 05/hcf increase) - $22.00/month ($0.50/month increase) - $IJO/hcf ($0.02/hcf increase Although the Board may adopt this Budget today, a full public hearing will be required for the Board to consider any changes to the District's water and sewer rates. The Budget also contains a number of new staffing positions for the Boards consideration. At the Budget Workshop, the Board reviewed the new positions which I had proposed. Since that time, I have re-evaluated my proposal and am now proposing a third new position which will add additional support to our field operations. The new positions I am proposing are as follows: Executive Assistant (Engineering) (2) Water Service Worker I - Range 42 - Range 32 In addition to these new positions, I have one immediate change that needs your consideration regarding our Meter Shop Supervisor's position. The existing pay range needs to be increased from Range 51 to range 52 to bring this position in line with all of the other District Supervisor positions. I am presenting this Budget and associated proposals for your consideration today. I recommend approval of this package, including the scheduling of a public hearing for the purpose of considering the rate adjustments that I have proposed. Your consideration of these matters is appreciated ~':R';.{!. o 0 ~ lO16co ~ai<.O ~ , ~ ~ 'OJ' <<i ~ g '" CO 8 ~ ~ (\I 8 8 ;j Ii ~ 8 g '" ~ 8 8 g l!! ~ o~ 8 o 8 '" '" ~ 8 '" CIl ~ 8 6 '" ?? "- Ol <<i o o o 00 ~ (\j o o o .,,; '" 'OJ' 00 o o o .,; 'OJ' U) <<i o o o 00 '" ~ '" o o o ..: '" ~ 00 o o q ~ U) Ol N .~.... g .' ..' ~!ft.. ...~:.~,;: "':'" >>l~M!:";"", .... ....:.Q.;..w.:....:.: ...:....!fi . , ~~~1,~1.'.~ti.j i!" !"j'li::i:~ :..... ..' '. ii~f' :.~. ..... ~ >uo::g eo' W w-w~ Z<i: a: a:li:;a.@ i=i: U ...J <:)WqjZ ~(I) ~ ~ ~~w5 w~ ffi 0 Cl;O'tJ:U D.llJ;:l; I- a: <;>1": I": w Z~ 0 D. 0 o Z W ;:) Z w ~ a: 888 ~g~ ~ ~ 8 ..,; ~ 888 8 ~t~ ~ r-: cO 0S(8 8cso ~~~ .,j ~ 888 ctSttio ll)\CJO "'CIlCll 0) ..,..~ ~ 888 8 PI ~ g 10_- W,...{'l) 0 ..: (f> 888 8 ~gsi g "",,~..,..a; J"-o. ~ CIl ~ ~ 8 '" ... '" ~ 8 6 ~ o 8 g 8 8 ~ l!! ~ ~~~~'#.<f!.'#.'#. d';~cs8gs888 "'0:;"'8''';0.00 ",:::;C\J..,.."l <;Jt\l , 8~8.8888 05":6 66";"'; It) U') fOCO'- ~ , I I I I I , I 8~8 :g..:g ~ 8888 gg~.,,; 8g88888g oi ".; 6 ,,; ",- 6 6 N co ~~~COC\l I . , . . I I I 8g8888gg g $,,;g~~ggN ~ co ~.. ~ ~o w ~'!l!" ~ 5~ W' IJJ', . x (3' ~..u:t. <( . ; i: .....' 9 . . !r.9it ." wm iil ....... . :5g~w .. .::~ 5i ... ...I....:..m... ....... ~ .... '.~' . '. . m~ ~~ ~:~ffi~w ~. ffi~5<i:li:;O'!;t~~~ D.rt)oo::<wws:o<(a: ~o\l..>wl-~O'u..zli:; a:...Ja::rz:rw- <:)liJwuwu::>I-t-~ ~iED.:c!;ta:oo::~:< Cl;5Vl~s:ir~~~~ flirt) a. o l/l w a: ::l l- S Z W D. X W ~ ~ '#"#.#-#.'# ~~888 cOciciuici 'OJ' ~ g ~8888 .,jt~~g ~ C\I'" .,j . I I I I ~ .,,; "- '" ~~~~~ ~Ul;~~~ '" g ..; ;b 8g888 ~~~sig '" C;J", N , , I I . '" '0 CD OJ '" CL 8g888 ~~~sig '" C;J", N co W ...J ::> ~O' ww sJ: O'g W, ~~ .u.. a:OlSffi ~~it ..J~a. (/) ozzVl oc WO' W <(l-zwS: 5~~~~ OO::<...J2<O' -w<( .. 1i:...J a: W ~ S2wQwl-...J ""a.J:t-~w ~::>W<(<::> :5(/)>::<:<u.. Q.. '" W ...J ::> 0' W J: U , .., '., .:<.........'. 130,000 13ll,OOO 1 Sil,OOO 150,000 1~ 150,000 150,000 155,000 155,000 3.33% 3.135.300 3.135.300 3.216.200 3.216.200 2.58% 88,000 88,000 112,200 112;l,3tf"":,. 27.50% 4,400 4,400 3,600 3,600:C. . -18.1SOk 17,000 17,000 14,000 14,000 -17.65% 30.000 30,000 25,000 25,000 -16.67% 30,000 30,000 50,000 50,000 66.67% 200,000 200,000 250,000 250,000 25.00% 140,000 140,000 140,000 140,000 0.00% 509.400 509.400 594600 594.aoo 16.76% 5,311,000 5,311.000 5,395,000 5,395,000 1.58% 5.311.000 5.311.000 5395.000 5.395.000 : 1.58% 365,000 365,000 335,000 335,000 -8.22% 62,400 62.400 65,400 65,400 4.81% 135,000 135,000 140.000 140,000 3.70% 55,000 55,000 65.000 65,000 18.18% 40,000 40,000 40,000 40,000 0.00% 657.400 657.400 645.400 645.400 -1.83% TR"AT"ENT"'-M''''''''~''''''''''''''' ........ r:: ty1 . 'un.+ ~:".::.,::<"::'~-:':<""'.:".,, ADMINIST<>;i.",~ ..,.:n;.;.;;~~;:;;:::::,'::':<: : ':.., nI'\:U';V'1i:.:v.y.~..,: ,.:....:.:~<::..: Page 2 of 13 CUSTOMER A~:;::~=:'::::r(':>" SUPERVISiq/Il ~~,;:~Dl!U:l,1 ' VEHICLE MA;Il'l~::a$$J> SQHl'lDVl,E a ~~)'...... SE~AGE dIJ~4\, .. E > ~~ SI~~:~~,~sl, .'" V C E~,a~ ",$.OI'IOUlE,1l MATERIAlS~!~~:, '" " ' ',' ,', MAINTE~"'" , ,'... ,.., ADMINIS4~~1~ GATE VALVE, .., ,"::, , SUPERVIS~~~fl'SCl1eDULE 1 ' VEHICLE ~~:F!(jEL'~HeD1Jl,E 13 " ADMINISTRA:~~'. ' FIRE HYDRANT;i-:':,' SUPERVISION!lND LABOR . SCHEDULE 1 MATERiAlS ANP SUPPLIES TELEMETRY, MAINTENANCE 314,000 314,000 33,900 33,900 45,000 45,000 5,000 5,000 10,000 10,000 407.900 407.900 192,000 192.000 43.000 43,000 32,000 32,000 35,000 35,000 40,000 40,000 342.000 342.000 29,000 29,000 4,400 4,400 4,000 4,000 37.400 37.400 16,000 16,000 3,000 3,000 19,000 19.000 25,000 25,000 25.000 25.000 Page 3 of 13 321,000 321,000 2.23% 32,500 32,500 -4.13"k 40,000 40,000 -11.11% 15,000 15,000 200.00% 20,000 20,000 100.00% 428.500 428.500 5.05% 200,000 200,000 4.17% 60,000 60,000 39.53% 34,000 34,000 6.25% 35,000 35,000 0.00% 35,000 35,000 -12.50% 364.000 364.000 6.43% 11,600 11,600 -60.00% -100.00% 4,000 4,000 0.00% 15.600 15.600 -58.29% 11,600 11,600 -27.500A, 5,000 5,000 66,67% 16.600 16,600 -12.6..'>% 35,000 35,000 40.00% 35.000 35.000 40.00% GiENERAL ANI:> "i,*","~ . . ,.,,$.<.:.;~:..,~":"': '., ~~~... "'XY" vv.........' "'" SUPERVISION:'#l~:~}'~f.. DIRECTORS~lil$''';::'''''';''::';':';''.i';''';'''''''::';'::' . ..... . DIRECTORS ;;:..o;ti\ii~iilt~;:;:::.;. :. """""""""........, .~;;....... ~~~f~_:;:5~~3, DUESANDSU~:!k~tE4.;": . "~::~;::::::::::;::;i.::::::::'::;::::~,;:::::::::::::.:.:.::"::::::.:./:. :- 6~~~G:uPP!.il\t~i;;@:;;;:..':.. ... . .. COMPUTERS'4llttif.~~::-, ............... . ~l1~l!~~'~7~U~;6:. '. AUOITI ACOO';;,;-.....,-"'..,............... .... L.tW',H~:;y~;.:.;.......: ..... TRUSTEE FEE$:l"".:t::::"}?::::...,.... ,.... ELECTION FEeii)';:::)i'if<..i;:: .:.:..., . REGULATORVg:';:>,U;::'::'" . RENTS AND l,~.. .....,..,.......,;.. ...... UCENSE;S ANd.~j.~tli;)l'$. EMPLOYEE P~::: ::' ':: GENERALINSlnlj~ft': ........ '.' ~~~~J.~j~ES" DISASTER EM~:' ". .. LESS AMOUNTS jHPc.A'i1:PtQ~AATIHC3ExPENSE: LESS AMOUN11lAO.9CA1~P:tO ~trAi. PRo..tECTS TOTAL GENERAL AND ADMINISTRATIVE 1,980,000 1,052.000 3,032,000 2,212,000 1,169,000 3.001.000 11.51 % $4.Q\)O 34,000 68,000 32.000 32,000 64,000 -5.ll8"~ 17.500 17,500 35,000 15,000 15,000 30,000 -14.29% 90,500 56,900 147,500 85,600 54,900 140,500 -4.75% 23.soo 11,000 34,500 26,000 12,000 38.000 10.14% 59,OllO 29,950 89,000 66.850 35,100 101;950 14.55% 10,000 55.000 125.000 70,000 55,000 125,000 0.00% 54,000 . 30.000 84,000 53,000 29,000 ~,OOO -2.38% 51,000 44,000 95,000 45,000 40,000 85,000 -10.53% 26,300 14,000 40,300 27,500 14,BOO 42,300 4.96% 442,100 205,900 648,000 507,100 250,900 758,000 16.98"10 55,000 30,000 85,000 55,000 30.000 85.000 0.00% 25,000 15,000 40.000 25,000 15.000 40,000 o. 15,000 15,000 20.000 20,000 33.33% 15,000 15,000 30,000 -100.00% 20,000 10,000 30,000 24,000 12.000 36,000 20.00% 90,000 35,000 125,000 2,000 1,000 3,000 2,000 1,000 3,000 O.llO% 11,000 11,000 22,000 12,000 12,000 24,000 9.09% 300,000 170,000 470,000 320.000 170,000 490,000 4.26% 35,000 25.000 60,000 42,000 28,000 70,000 16.67% 6,000 4,000 10,000 9,000 6,000 15,000 50.00'% 4,000 2,000 6,000 5,000 3,000 8.000 33.33"10 (346,500) (40,000) (386,500) (362,000) (35,000) (397.000) 2.720/. (12,000) (11,000) (23,000) (12,000) (11,000) (23,000) 0.000/0 2.977,550 1.782.250 4.759.800 3.370.050 1,973,700 5.343.750 12.27% Page 4 of 13 . . NON-OPERATINQ.I;i(P.i:'. ~~gg::~~L::\:",::,'<".i '. .... 2004 HEADQU~j~@Tt.lR~ilIITEREST 2005 CAPITAL~!.;'~~~\3I~E$T' TOTAL NON-OPERATING EXPENSE TOTAL EXPENSES NET INCOME CAPITAL ~=~~"":8 i:.. .. '. ... .. SUPE ~~~..~US.l '. =:~~~=~~:III~~r'~~~.~~ MUTUALWAT~~~:~ ..' .... NON-DESIGNA.:......~'f4;:RepAlI'\S:: . .' ~~~::_....;......... .... ~~~:iO=~~ARlS' RESERVOIR RaJNiOO: . SAFETY EQUlf'~' SEWER MAIN ~peS TRUCKS WATER TRUCK DUMP TRUCK WATER MAIN AePl.A66MENTS............................... . METER REPLACEMENT PROGRAM MISCELLANEOUS EQUIPMENT & TOOLS TREATMENT PLANT UPGRADE (DESIGN) PLANT 1501107 DESIGN WATER SYSTEM MASTER PLAN 147,985 147,985 110,605 110,605 -2526% 403,979 403,979 376,460 376,460 -6.81% 292,600 146,738 439,338 282,774 141,811 424,585 -3.36% 250,000 250,000 294,785 294,785 17.91% 1.094.564 146.738 1 .241.302 1.064.624 141.811 1 .206.435 -2.81% 9.508.314 7.581.988 17.090.302 9.759.974 7.874.511 17.634.485 3.18% 3.442.686 605.012 4.047.698 3.785.026 558.489 4.343.515 7.31% 292,000 257,000 549,000 327,000 178,000 503,000 -8.38% 12,000 11,000 23,000 12,000 11,000 23,000 0.00% 60,000 40,000 100,000 60,000 40,000 100,000 0.00% 10,000 10,000 10,000 10,000 0.00% 65,000 25,000 90,000 70,000 25,000 95,000 5.56% 10,000 10,000 20,000 11,000 11,000 22,000 10.00% 2.500 2,500 5,000 2,500 2,500 5,000 0.00% 7,500 7,600 15,000 37,500 37,500 75,000 15,000 15,000 30,000 -60.00% 150,000 150,000 175,000 175,000 16.67% 12.000 8,000 20,000 12,000 8,000 20,000 0.00% 50,000 50,000 40.000 40,000 -20.00% 105,000 45,000 150,000 150,000 50,000 200,000 33.33% 51.000 24,000 75,000 70.000 25.000 95,000 175,000 175,000 175,000 175,000 0.00% 375,000 375,000 500,000 500,000 33.33% 10,000 5,000 15,000 10,000 5,000 15,000 0.000", 200,000 200,000 40,000 40,000 -80.00% 350,000 350,000 50,000 50,000 -85.71% 200,000 200,000 Page 5 of 13 TOTAL CAPITAL PROJECTS OTHER USES OF ~~)::.". ". .' COP PRINCIP~jt~~... 1996 - REFU~'.::i" 2001-REFU~>": ........... ....... . ...... 2004 HEAD~if,\$'i.!/itF~'f$.IP1VRJ; PROJECT 2005CAPtTAii:~~lF~NG ... . 1,868.500 493.500 2,362.000 106,509 720,000 635,000 324,209 151,200 720,000 635,000 217,700 151,200 TOTAL - OTHER USES 1,723.900 106.509 1.830.409 CONTINGENCY EXPENSE 5.000 5.000 10.000 TOTAL EXPENSES 13.105,714 8,186,997 21,292,711 TRANSFER TO (FROM) RESERVES (155.000\ (155.000\ BALANCE 286 289 3 Page 6 of 13 1.951,000 442,000 2,393,000 760,000 660,000 227,600 181,240 760,000 660,000 338,963 181 ,240 111,363 1,828.840 111.363 1.940.203 5.000 5,000 10,000 13,544.814 8.432.874 21,977.688 186 126 312 1.31% 5.56% 3.94% 4.55% 19.87% 6.00% 0.00% 3.22% -100.00% 7.96% OPERATING exP~~~RV!~N~Di!AeOR) SOURCEOF$~Y::"'" .. .. PUMPING ...' :." ::' . ',. :,' '. WATERTReA.~' ............ '.' TRANSMI~~~!i~pl~~.. CUSTOMEFt:~m$:::.. .: . GATE VALVt!l}':.;:/<'/ FIRE HYDRANt:.. .... .' SEWAGE C~<m~' .. .... . ...... 69,000 69,000 68,000 68,000 -15.94% 372,000 372,000 402,200 402,200 8.12% 88,000 88,000 112,200 112,200 27.50% 365,000 365,000 335,000 335,000 -8.22% 314,000 314,000 321,000 321,000 2..23% 29,000 29,000 11,600 11,600 -60.00% 16,000 16,000 11,600 11,600 -27.50"-" 192,000 192,000 200,000 200,000 4.17% 1.253.000 192.000 1 ,445.000 1.251.600 200.000 1.451.600 0.46% 'TOTAL OPERATING EXPENSES !SUPERVISION AND LABOR: GENERALAND~~:::' .:...... SUPERVISldj;Uil!iti:~:.>:':'::: .' TOTALDISTi.il'~~~/' :.. TOTAL GENERAL AND ADMINISTRATIVE 1,084,000 577,000 1,661,000 1,257,000 677,000 1,934,000 16.44% 896,000 475,000 1,371,000 955,000 492,000 1,447,000 5.54% 1.980.000 1.052.000 3.032.000 2.212.000 1.169.000 3.381.000 11.51% 292.000 257.000 549.000 327.000 176.000 503.000 -8.38% 3.525.000 1.501.000 5.026.000 3.790.600 1.545.000 5.335.600 6.16% -.. - CAPITAL PROJECTS (SUPERVISION AND LABOR) TOTAL SALARIES AND BENEFITS Page 7 of 13 . . ....... ..., .. . . " ... ...." ." GENERAL AND ~~HAtM;> . .. GENERAL Of1fl~~!~ FORMS, BI\.IAi:~... COMPUTERM~:::":::" . TOTAL GENERAL AND ADMINISTRATIVE 26,000 8,000 20,000 16,000 4,000 10,000 42,000 12,000 30,000 25,000 7,000 21,000 15,000 3,000 11,000 40,000 10,000 32,000 -4.76% -16.670/0 6.67'% 54.000 30.000 84.000 53.000 29.000 82.000 -2.38% Page 8 of 13 . '. '. . . .<.:.:.:::::~::::::.~:~:::~?~::~~t~:::j~t?j~~;;;;r;::~;t~~:;;~:~:~::: '.:" PUMPING . .... . .... .. FUEL AND p~~ !ElECTf'!:K:;:AL) TOTAL PUM,~:;::;:'.:'::;: '.. GENERALAND~~~.. UTILITIES: ....... ..... '.' . ELECTRIC:::"::':-::: ".<. "';\<::-::. -:,.. . NATURAL ~ ;i:".,.: ....,."... ""'. .. .', . "''jN%t.::':::: TELEPHON~........... ........... TRASH :.;.::.::...:....:.i::.:.::..~,:.::.......::::.....i::::::,,;:: '" . . /,>.:::::)::}}.:'.,:.?: .::.... . TOTAL <3:EN~~(\tlMINI~;mAl1ve. . TOTAL UTILITIES 2,200,000 2.200,000 2,200,000 2,200,000 2,200,000 0.00% 2.200000 2.200.000 2.200.000 0.00% 40,000 30,000 70,000 40,000 30,000 70,000 0.00% 1,600 900 2,500 1,600 900 2,500 0.00% 39,000 21,000 60,000 34,000 19,000 53,000 -11.67% 10,000 5,000 15,000 10,000 5,000 15,000 0.00% 90.600 56.900 147500 85.600 54.900 140.500 -4.75% 2.290.600 56,900 2.347.500 2.285.600 54.900 2.340.500 -0.30% _nO Page 9 of 13 , ~.';' TOTAL DUES AND SUBSCRIPTIONS 9,500 5,500 15,000 9,500 5,500 15,000 0.00% 150 100 250 150 100 250 0.00% 200 100 300 200 100 300 0.00% 2,800 2,800 2,800 2,800 0.00% 13,000 13,000 14,000 14,000 7.69% 75Q 750 1,500 750 750 1,500 o. 1,500 1.400 2,900 1,700 1,800 3,300 13.790/. 200 100 300 200 100 300 0.00% 1,900 800 2,700 1,900 800 2,700 0.00% 250 250 500 3,500 3,500 7,000 1300.00% 700 700 700 700 0.00% 650 350 1,000 2,000 1,000 3,000 200.00% 200 100 300 300 100 400 33.33% 800 400 1,200 900 400 1,300 8.33% 6,500 3,500 10,000 6,500 3,500 10,000 0.00% 5,000 3,000 8,000 5,300 3,200 8.500 6.25% 2,500 2,500 5,000 2,500 2,500 5,000 0.00"", 150 150 300 150 150 300 0.00"/. 750 750 450 450 900 1,400 1,400 2,800 1,400 1,400 2,800 0.00% 100 100 100 100 0.00% 2,000 1,000 3,000 2,200 1,300 3,500 16.67% 350 350 350 350 0.00% 7,500 7,500 15,000 7,500 7,500 15,000 0.00% 1,300 700 2,000 1.400 800 2,200 10. 59.050 29.950 89,000 66.850 35.100 101.950 AWWARF~"lif~~e$ '.' .' ~~~UNI:~~llON:J... .... ~:.--~,,< ~~U:~~'~~~'t;;.. ~~~.~!F. LAFCO')'\i.. . .... ....:.: .' . '," ,.,.. .., MISCELLA~. .... . .. ARST AME~~~"TJ;:. ~~~1T" UPPER $AurA.':"''':':':::':';''. '-:.:;'" '::. . :~i~=~~=~ . WATER Re@Ac$$WsTrru~ IC~ STATE) WESTCAS . .. Page 10 of 13 GENE~~~ E;~ ~':>lT~~AL:~~(:"'" .'. 1.._R>.1!:~t:~ OFFICE EQ~t'{.} ...........': ....... .... .'. CITIZENS ~~i_(;HANTFeEs UNIFORMS:.:..d;>< ...... . . MED1CAL~A~~.... . ." ~~:L~~~~M~i.lf":.'~~'. . GENERAL E.1IIe~< . FEDERAL FIi~NiA5: '. . STATE RE~l\'fIQt\V.. . OUTSIDE ~tsMP6fWIY 6~~I~_'~~E~N1OO OUTSOUROE~i!:~11\!G (DATA PROSE) TOTAL GENERAL AND ADMINISTRATIVE 88,000 27,000 115,000 88,000 27,000 115,000 0.00% 8,600 4,400 13,000 8,600 4,400 13,000 0.00% 50,000 25,000 75,000 46,000 24,000 70,000 -6.61% 11,000 5,000 16,000 10.000 5,000 15,000 -6.25% 10,000 5,000 15,000 8,000 4,000 12,000 -2O.GO% 10,500 5,500 16,000 10,500 5,500 16,000 O.OO"'{' 13,000 7,000 20,000 14.,000 8,000 22,000 10.00% 40,000 20,000 60,000 40,000 20,000 60,000 O.OO"k 16,000 9,000 25,000 26,000 14,000 40.000 60.00% 12,000 6,000 18,000 12,000 6,000 18,000 0.00% 7,000 4,000 11,000 8,000 4,000 12,000 9.09% 10,000 1 0,000 10.000 10,000 O.GO% 60,000 25,000 85,000 98.000 52,000 150,000 76A7% 15,000 10,000 25,000 16,000 11,000 27,000 8.00% 35,000 15,000 50,000 35,000 15,000 50,000 0.00% 28,000 12,000 40,000 28,000 12,000 40,000 0.00% 6.000 4,000 10,000 20,000 10,000 30,000 200.00"k 5,000 5,000 10,000 5,000 5,000 10,000 0.00% 6,000 6,000 12,000 8,000 8,000 16,000 33.33% 11,000 11,000 22,000 16,000 16,000 32,000 45.45% 442.100 205.900 648.000 507.100 250,900 758,000 16.98% Page 11 of 13 . . ......:::.!!.:.;i::~;;i;:f:f~:::iii:j::~ff~;l;j::jj:~~i:'j:;":'::'" ~0~~ClE ANPE.~~~.~}?" '. ,"d. TOTAL VEHICLE MAINTENANCE AND FUEL ~~~;: . :~el~.:!..:::::::>:::::. .. GENERAL&::............~iw... '. ~~:::~.:,::;::.;::.:.:.~.:..:..... TOTAL VEHICLE I EQUIPMENT MAl NT AND FUEL . 98,000 32,000 130,000 105,000 30,000 135,000 3.85% 75,000 25,000 100,000 100,000 30,000 130,000 30.00% 173.000 5?000 230.000 205.000 60,000 265,000 15.22% - ~ 3,300 7,200 7,200 118.18% 38,300 38,300 54,000 54.000 40.99% 4,400 4,400 3,600 3,600 -18.18% 62,400 62,400 65,400 65,400 4.81% 33,900 3$,900 32,500 32,500 -4.13% 43,000 43,000 60,000 60,000 39.53"k 4,400 4,400 -100.00% 26,300 14,000 40,300 27,500 14,800 42,300 4.96. 173.000 57,000 230,000 190.200 74,800 265,000 15.22"1< Page 12 of 13 TRAVEL, MEALS, LO~11'ilG ~CQNfERENYeS 17,500 17.500 35,000 15,000 15,000 30,000 -14.29% TOTAL DIRECTORS EXPENSE 17.500 - 17.500 35,000 15.000 15.000 30.000 -14.29% Page 13 of 13 COMMISSIONERS PAUL BlANE. Chair Board Of SUf,ervlsors BOB COLVEN Vice Chair SPECial DlstT ct KIMBERlY C( X Special Dlstr ct DENNIS HAN ;BEROER Board of SU'}E!rvlsors lARRY McCA ~ON City Membe ' MARK NUAIHI City Membe ' RICHARD P. j'EARSON Public Memt ler ALTERNATI;S JAMES V, CURATALO S~lal Dtsb let JOSiE CONZJ ,LES Board of Su 7lervlsors. A,R, "TONY' ;EDANO Public Meml ler DIANE WILLI \MS City Membe' STAFF iG\iHLEEN R JLUNCS.McDONALD executive 0 'fleer SAMUEL MA mNEZ lAfCO Anal) st MICHAEL A, TUERPE LAfCO Anah st DEBBY CHAI1BERUN Clerk to th1:: Comm{'S~,lon ANGELA M. ;CHEll Deputy Clelk to the CommIssion LECAL COlJNSEL ClARK H, AI SOP LOCAL AGENCY FORMATION COMMISSION 175 West FIfth Street, SecondF/oor " San Bernard/no, CA 92415.0490 (9091387-5866 " Fax (909) 387-5871 E-mail: (afco@/afro,sbcounty.gov ," wWW.s!Jclafco.org EstablIShed by the State Of california to serve the CltIzens. CIties. Special DIstricts anOthe coontv Of san flernarc1ino DATE: MAY 26,2006 FROM: KATHLEEN ROLLINGS-McDONALD, Executive Officer TO: ALL INDEPENDENT SPECIAL DISTRICTS IN SAN BERNAR:D1NQ COUNTY SUBJECT: SPECIAL DISTRICTS ELECTION FOR REGULAR AND ALTERNATE LAFCO MEMBERS By distribution of this memorandum, the official voting process for the Regular and Alternate Special District Members of the Local Agency Formation Commission shall commence. Attached is, the ballot for the selection of these positions. Pursuant to the provision of Government Code Section 56332, the voting period will be for 35 days, commencing as of today's date and ending on JUNE 30, 2006. The voting instructions for this selection are as follows: 1. Each District may vote for one nominated candidate only. The vote shall be cast as directed by the Board of Directors of the District through consideration at a Board Hearing and a roll call vote, The signed original ballot, with the name of each voting Board Member outlined, must be received in the LA.FCO Office by 5:00 p.m. on June 30. 2006. If a faxed copy of the ballot is provided by the June 30th date, the original signed copy must be received by 5:00 p.m., on July 5\h or the ballot will be declared invalid. 2, 3, Twenty-seven (27) ballots are required to be received for selection of the Special District Member positions, The completed ballot is to be mailed to: Kathleen Rollings-McDonald, Executive Officer Local Agency Formation Commission 175 West Fifth Street, 2nd Floor San Bernardino, CA 92415-0490 MAILED BALLOT LAFCO SPECIAL DISTRICT MEMBERS MAY 26,2006 If you are faxing a copy of the ballot, the LAFCO Fax number is (909) 387-5871. As outlined in Item #2 above, if the ballot is faxed to the LAFCO office, the original signed copy of the ballot will need to be mailed to the above address and received by 5:00 p.m. on July 5th to be considered in the election. Please let me know if you have any questions or concerns regarding this selection procedure. You may contact me at the address listed above, bye-mail at lafc:o@lafco.sbcounty.gov, or by phone at (909) 387-5866. Sincerely, / - - ~T~LEE~ -~d;~~{MCDONALD Executive Officer Attachment BALLOT REGULAR AND ALTERNATE SPECIAL DISTRICT MEMBERS LOCAL AGENCY FORMATION COMMISSION The hereby votes for the marked candidate as indicated below. REGULAR MEMBER OF LAFCO: Bob Colven (Incumbent - member of the Board of Directors of the Big Bear City Community Services District) Gerald Smith (member of the Board of Directors of the Baldy Mesa Water Dis~rict) ALTERNATE MEMBER OF LAFCO: James V. Curatalo, Jr. (Incumbent - member of the Board of Directors of the Cucamoriga Valley Water District) Gerald Smith (member of the Board of Directors of the Baldy Mesa Water District) , I, , do hereby certify that at its regularly scheduled meeting of , the Board of Directors voted to elect the above-marked candidates as the Regular and Alternate Special District Members of the Local Agency Formation Commission of San Bernardino County, by the following vote: AYES: DIRECTORS: NOES: DIRECTORS: ABSENT: DIRECTORS: ABSTAIN: DIRECTORS: District President/Authorized Board Member Dated: CROYDON RISK CONSULTANTS 198 North Arrowhead Avenue, San Bernardino, CA 92408 U.S.A. Telephone 909,884,8294 Facsimile 909381.7610 croydonrisk@carthlink.net June 6, 2006 ," . ~ -, ,~ Robert E. Martin, P.E., General Manager EAST VALLEY WATER DISTRICT 3645 East Highland Avenue Highland, CA 92346 Re: Alternative Insurance Facilities Dear Bob: As part of our "Alternative Insurance Facilities" consulting project, I met with senior managers and executives of the Association of California Water Agencies - Joint Powers Insurance Authority (ACW AlJPIA) and Special District Risk Management Authority (SDRMA) in their offices on May 16,2006, Everyone I spoke with was very forthcoming and each organization welcomed the opportunity to tell its story and to be introduced to East Valley Wafer District. I received detailed information about the risk pooling and insurance programs each organization offers, and engaged in candid discussions of background, current developments, goals and overall approaches each program takes to assist its constituents with insurance and risk management needs, The meetings and information I received provide a sound basis for the following report of fmdings and recommendations to the EVWD Board Insurance Committee, which we discussed in detail on June 5,2006. Thank you for this opportunity to work :with EVWD and to advise your Insurance Committee and Board of Directors on these important matters. \SiyerelY~ J., " '-- ~-...;;-...)\.~ Paul W. Pinckney, CPC , Principal I CROYDON RISK CONSULTANTS East Valley Water District Risk Management Study Alternative Insurance Facilities, June 2006 Executive Summary Croydon Risk Consultants has been engaged by East Valley Water District to review the characteristics, operations and financial aspects of two (2) prominent California joint powers and risk management authorities, and to report to the Board Insurance Committee about the possible viability of each program to provide proposals for upcoming liability, auto, property and workers' compensation policy renewals. Each program was created under California Government Code Section 6500 et seq., which allows public entities to pool risk. In addition to risk pooling, risk management and related services and the joint purchase of excess loss insurance and reinsurance complete the "insurance-like" package of services offered by each entity. Each program requires an application for membership and approval by current members. ACWAlJIPA was formed in 1979 to meet the specific needs of California' s water districts. It operates a risk pooling program strongly supported by staff risk management , and educational services as well as claim adjusters. Variable premium levels reflect member self-retention of risk, selected risk pooling points and retrospective premium adjustments for each member. Coverage is tailored to water agency, public entity risks. Financial aspects appear to be very strong with reputable, stable reinsurance coverage of catastrophic risks. Total insured limits of liability are $40 million, There is a one year membership commitment. There is a goal to provide exceptional services and coverage well below commercial market costs. SDRMA was chartered in 1986. It accepts as members a wide variety of California's "special districts", from Community Service Districts (117), to Water Agencies (47), to O~meteries (17), to Libraries (9) and Cities (3). In addition to risk pooling, claims control, risk management and related services are supported by outsourced resources. In- house internet driven training and professional development programs provide opportunities for premium credits by members. Coverage is crafted to meet the needs of California public entities. Risk pooling and premium charges are prospective and have no provision for future loss-responsive adjustments, Conservative actuarial margins are part of premium charges, Total insured limits ofliability are $25 million. There is a three year minimum membership commitment. The program seems financially strong and is supported by recognized, stable insurance and reinsurance companies. I recommend that each risk pooling entity be asked to provide risk survey services and proposals for EVWD insurance renewals, along with commercial insurance proposals for workers' compensation by Sander Kessler Insurance, and general and auto liability, dlrectors and officers, property, machinery and criminal loss policies through Arroyo Insurance Services, 2 CROYDON RISK CONSULT ANTS Risk Management Study for EVWD Alternative Insnrance Facilities Insurance Committee Report Croydon Risk Consultants (CRC) has been engaged by EVWD (District) to assist the District in better understanding opportunities that may be presented by ACW NJPIA and SDRMA, each a specialized risk pooling authority created under California Government Code Section 6900, et seq, Each entity is a resource for proposing District liability, auto, Directors and Officers, property, machinery, criminal loss and workers' compensation policies as they renew October 1,2006. W!=lrkers' Compensation coverage is now provided through Sander Kessler & Associates, with a July I expiration date. The other policies are provided through Arroyo Insurance Services. All current coverage is purchased from commercial insurers that have developed tailored coverage, pricing and services for special districts. CRC has been asked to meet with senior staff and managers of each entity in their offices, to secure relevant printed materials and reports and to discuss with them applications of their programs, CRC is asked provide the Board Insurance Committee a report of fmdings and recommendations related to similarities of the programs, material differences and the possibility that either or both programs could benefit the District as sources of renewal proposals. Senior management and staff we met provided all requested information, engaged in candid discUssions of important aspects of each program and generally were hospitable, welcoming ljIld collegial throughout'the process 0"1" organizing and conducting meetings in their respective offices. Key Issues Considered by CRC ~ The nature and character of ~ach program, the vision of its management and approach to risk pooling, financial management and member services. ~ Membership requirements, given that the District is currently a member of ACW A and CSDA, sponsoring organizations of the respective risk pooling plans. ~ Range of coverage offered, underwriting criteria and risk selection approach. ~ Financial security including insurance and reinsurance against catastrophic losses. ~ Service offerings, staff and outsourced resources, ~ Funding requirements, risk pooling contributions and ongoing financial obligations, including exit requirements, , , 3 }> Estimation of costs to join and to participate in the risk pooling plan. Findings and Recommendations }> Each program is centered on member service, with major emphasis on effective risk management, safety tridning, claims management, fmancial controls and efficient operations. o ACW NJPIA operates its risk pool with ample opportunity for members to retain risk to individual tolerances, to share risk with other members and to jointly purchased excess, catastrophe insurance and reinsurance, all on a retrospective rating basis where subject losses determine ultimate costs of coverage, over time. There is a general attitude toward developing in- house service capabilities, with little outsourced services. o SDRMA approaches risk sharing, risk control, risk management and member services on more of a group basis, with prospective premiums, cost smoothing reserve ac-cumulation and "first dollar" coverage, without individual risk retention of self-funding. There is a systems-oriented approach to member services, with claims and risk control services outsourced to reputable service providers. o Each program is accredited by California Association of Joint Power Authorities (CAJPA) "with 'excellence", . o Each program provides member services without added charge, with costs allocated within the General and Administration component of premium charges, )> Membership requirements and costs of each program are comparable, with a detailed application for insurance proposals, followed by a thorough underwriting assessment and proposals of coverage, services and costs, then if the proposal is accepted, a detailed risk control inspection and recommendations and agreement by the District to comply. There is also a membership application which is reviewed and voted upon by Authority management and, ultimately by its Board. Membership requirements seem uncomplicated and straight-forward and costs are likely to be nominal. ;.. Coverage offerings are very similar, each with more of a "public officials" viewpoint as opposed to a corporate "directors and officers" perspective. Each program offers broadly-drawn coverage terms and conditions and the underwriting approach taken by each program seems thorough, risk management oriented and responsive to member needs. o These are risk pools and not insurance programs, operations are governed by California's Government Code and not the Insurance Commissioner, 4 although purchase and application of excess insurance and reinsurance is subject to Insurance Department regulation. o Limits of coverage differ materially between the plans. ACW AlJPIA offers $40 million each occurrence general liability and auto coverage, whereas SDRMA offers $10 million, basic limits and up to $15 million excess coverage. o Property coverage offerings include guaranteed replacement cost, no coinsurance and boiler and machinery coverage, with valuation by appraisal through ACW AlJPIA and "best estimation by District" basis with SDRMA. o It is interesting to note that ACW AlJPIA insures and reinsures primarily with American International Group (AIG) companies and that SDRMA uses mostly Munich Reinsurance resources - the parent of America's Alternative Insurance Company (AAIC) the current underwriters of the specialized commercial insurance program purchased by the District. o There may be some risk should the District ask SDRMA for a proposal at the same time AAIC is approached by Arroyo Insurance regarding the . . same risk. It may be that the "Munich Reinsurance" group has a policy against competing one of its 'companies against the other, with the possibility of generating tv,ro distinct answers to the same question - how . and how much to insure the District. ~ Each program is strongly supported by material financial capacity and large catastrophe loss reserves and cost smoothing reserves. o ACW AlJTJ> A states it has no debt and that at least 25% of its assets are unencumbered by losses or liabilities. Net assets as of September 30, 2005 are reported to have been over $24.8 million. o SDRMA has accumulated large reserve accounts and is further protected by excess surplus within actuarial loss cost projections with at least 90% risk margin to protect against severe adverse deviation and terrible loss events. Net assets as of June 30, 2005 are reported to have been over $17.4 million. o Neither program has protection offered to "admitted" commercial insurers under California's insurance insolvency guarantee fund which, itself is severely limited to, I believe, $500,000 any uninsured loss. o Reinsurance is provided to each program through strong, reputable and to date, highly rated sophisticated international insurance and reinsurance organizations. 5 ~ Each program offers a wide variety of public-entity directed services, with emphasis on safety training, professional development, risk avoidance and transfer and risk management serVices: o ACW AlJPIA seems more directed toward developing and delivering in- house capabilities and services with underwriting, claims, risk control, appraisals and related services they.offer. o SDRMA offers many services, as well, but uses contract resources for legal, claims and risk control, with substantial input and direction from reinsurers as to underwriting standards, risk acceptance and risk management recommendations. o Each program offers specific services that are accredited by California's Department of Health and Human Services for "contact hours" to support certification by District employees and managers. ~ Funding requirements of each program are dissimilar in approach and effect. Each program uses conservative actuarial projections of losses and related costs and is careful in husbanding resources and providing efficient, low overhead operations. Each program allows settlement of small losses by members, with input by program claim administrators. o ACW AlJPIA charges a deposit premium based on payroll, previous loss experience and mathematical formulae intended to recognize economies of scale and credibility of expected losses and expenses. Minimum premiums are based on payroll and retrospective allocation points vary with basic premium computations. There is a.minimum one year program commitment. . The ultimate premium for a given policy year is determined once all reported losses for the period are closed, thus final "truing up" of premium costs could take years to complete. . Computations begin 48 months after policy inception and are conducted annually thereafter, with credit or debit amounts held in a stabilization account until all losses are closed. . A member may withdraw from the programs at will, but will wait until final retrospective premium adjustments for final reconciliation of premium costs. . Distribution of excess surplus within reserve accounts is done when "superabundance" is determined by ACW AlJPIA Board, 6 with distributions to members that participated in the programs in the year(s) when e~cess. surplus was earned. )> SDRMA computes premiums as a function of district budgets, on a prospective, "guaranteed cost" basis with little or no self-funding or deductibles, in a manner similar to commercial insurance risk transfer transactions. o Risk assessment, classification relativities and premium cost computations are coordinated with reinsurers and the reinsurance intermediary used by the program. o Premiums are conservatively set and payments are made annually, in advance for Liability and Property program, quarterly for Workers' Compensation with annual voluntary audit provisions. o There is a three year commitment requirement for joining the program(s), with set premiums paid each year o Excess surplus, stabilization and catastrophe accounts are managed to smooth premium charges year-to-year, and are distributed as premium holidays or dividends to members participating in the prog~m in the year returns are declared. )> The process of joinjng each program i& relatively simple and set;:ms not to be costly. The key issue is the proposed insurance program(s) and acceptance by Authority Board of the District as a member as well as a "policyholder" in the risk pooling program. o An insurance application along with financial statements, risk exposure disclosure and loss history is required. o Once a proposal is presented and accepted, thorough underwriting inspections are conducted and recommendations need to be complies with soon after coverage attaches. o Application to California's Director of Self-Insured Plans needs to be made and approved to allow District participation in the risk pools. The good news is that California public entities are not required to bond loss reserve amounts as are self-insured public corporations. o Membership in the Authority needs to be authorized by District Board resolution, followed by application to join the Authority, itself. In summary, I believe ACW AlJPIA and SDRMA each represent viable, financially sound and responsive risk pooling programs that can provide comparable coverage to the 7 District's current commercial insurance program, but with services tailored to public entity and water district risks and needs, and possibly at lower total costs than at present. Each program has unique characteristics and approaches to risk pooling, risk management, cost control and member services, but neither program imposes requirements that collide with District risk profile, operations or insurance-related goals. ~ ACW AlJPIA seems to say "let me help you manage risks and organize ways for you to fund expected losses, while protecting you and your colleagues from catastrophic loss", while providing at no additional cost a vast array of valuable services and resources. ~ The SDRMA program is more centered on a risk management approach to risk funding and payment of a sum certain for transferring risk to an insurance-like entity, with past losses reflected in future premiums. Many valuable services and resources are provided by SDRMA, without added cost, as well. I recommend the District by not later than Juiy 1, 2006, ask ACW AfJPIA and SDRMA to meet with its Insurance Committee to discuss the possibility of each program providing competitive proposals for District property, liability and criminal loss coverage in October 2006, and, in the absence of compeUing reasons to the contrary, that each proposal be considered to replace current commercial insurance policies. Note that while Workers' Compensation coverage extends from July I, 2006~2007, given the Insurance Committee recommendation of concurrent expirations for all. EVWD property and casualty insurance, change of expiration dates may be achieved by either extending current coverage to October 1,2006 or by.arranging that the successful program for the other coverage to pick up Workers' Compensation for the period July 1,2007 to October 1,2007, and to continue annually, thereafter. I would plan to meet with the EVWD Board of Directors on June 13 to discuss this report in detail, and to review with them printed information and reports given to me by each entity as part of this project. For reference, details of each program may be viewed by visiting the respective web- sites. ACWAfJPIA is at "acwajpia.com", SDRMA is at "SDRMAORG". Please note that this report is intended solely for the confidential information ofEVWD. AJ~y other distribution or use is not allowed without the written consent of CRe. The proposal accepted by EVWD and that is the basis for this work is included herein by reference, particularly in respect of conditions, limitations, representations and reliances within the proposal. 8 Sp.~..,.d.Jlh.M.I"p"1l.~W.I.rllI1trlll.IS...tbrnt.Ii'.,nl. Lake Skinner May 19-21 A six-month program for high school students In whlc! teams build, equip and race solar-powered boats, Ie :Jrnlng about conservation of natural resources, "Iectrlcal and mechanical engineering, problem solving and more. Solar Cup is sponsored by the Metropolitan Water District of Southern California. Teams are sponsored and financed by local water utilities, government agencies, and non-profits. Qualifying events are Friday, May 19. Sprint races U1 ing solar energy stored in batteri'es are on Saturday, May 20, Endurance races using solar energy collection panels, and awards ceremony, are Sunday, May 21. Free admission, Directions: Take 1-15 to Rancho California Road, Temecula: go north 10 miles to main gote. Fees charged for RVs and oVElrnight camping; reservations '-800-2<4-7275. Single-seat boats, 16-feet- ong and about EO pounds, are built fro n identical kits of marine-caliber wood provided by Metropolitan Water District. Boats may be equipped with up to four solar ccllection panels, about 4-feet-square. Maximum output allowed from all panels is 320 watts. www,ml.dh2o.com www.bewaterwise.com 1-866-95-S0LAR r : Schools and Sponsors City of Anaheim - Anaheim High Transportation Academy, Canyon High City of Glendale - Hebert Hoover High City of Long Beach - Long Beach Polytechnic High, Millikan High City of San Fernando - San Femando High Calleguas MWD - Camarilla High Central Basin MWD - Califamia High, Warren High County of Riverside - Murrtetta Valiey High Eastern MWD - Canyon Springs High, Perris High, . Roncha High, San Jacinto High Eastern MWD/Rancho California WD - Greot Oak High, Chaparral High Inland Empire Utilities - Upland High Inland Empire Utilities Agency and City of Chino Hills - Ayola High, China Hills High Irvine Ranch Water District . and MWD of Orange County' . - Ei Tor.o High Rahus Institute and Imperial . Irrigation District - india High Three Valleys MWD - Chorter Oak High, Claremont High, Garey High, Pomona High, San Olmos High Three Valleys MWD/Rowland WD - Nogales High Three Valleys MWD/Walnut Valley WD - Diamond Ranch High, Diamond Bar High, Santana High Upper San Gabriel Valley MWD - EI Monte High, Gobrielino High, La Puente High, Los Altos High Western MWD - Jurupa Valley High West Basin MWD - Leuzinger High To Be Announced - La Sierra High, Norco High, Opportunities Unlimited Charter High MWD METROPOLITAN WATER OISmlCT OF SOUTHERN CA 700 N. Alameda St., Los Angeles, CA 90012 P.o. Box 54153, Los Angeles, CA 90054-0153 12131217-6000 18001 CALL MWD www.mwdh2o.com bewaterwise.com 1/06 5M Sponsored by The Metropolitan Water District 01 Southern California iiJ ~. ~27~~J SkinneJf '~ ,I~ ~~.~. ~~ ,':',e\ ~. SI/..\0' \eO ~~. O\(..'~ \0<\ 0 06 \; \(30'1. le\ ,?-O cu\O leG _ (),Cl <00 \w0'e "',(), ~ ",'0 <;\ fiJI q'l.q , Gu\00 '<;\e ~ 0' \l-IWC oe '? . ~"O'" "'u' u"" CO tr,,\00 ~"e lI\petition !r.:!1il1\'Ill', Is a CO h'gn ""'-Id~\!1 Jij w '\/o'le ,,\ ;v"'" " ond pH ut tor pU::lIIC ci nts tnroUgno d nOc I stu 8 . sponsor8 SC Co\itorn\O, oter soutne(n oliton'i'J. the ME,troP cal\1orn\a bY coutnern water Oistril;t ot -, citieS ond rnber Solar and it',:: In Its tnird ye~;~s Kind ger c\' \/ent 0\ o >he onlY e .'~.:-"'V'F;~' cuP is I" '01.,. . '. ',' """"": . Coli10rn\. ,~ . -;- H\ l ~'., "Wi' -: . . FREE ADMISSION . to Solar Cup; overnight camping and RV fees charged. Camping reservations 1-800-234-7275. "\', 2004 www.r1wdh2o.com www.be..:;..::.:.>l.wise.com May 13~15 ~ili' ro $11:1110 to" ke ISfi 11$: '<On... ree.,. G c"o C ova}' . 0 nOrth 1 Olifomlo R. mOln 0 miles t Ci, 90te. 0 s_., ellllt e""",_ and ~"".."@ boots ,compete SOlar.pconstrUct ,nVoIV1n.... oWered olternat' g "Ie stud IVe ener ents with converso gy source mech lOn, electrl s, SOlar anlcal SYst Cal and Of natural ems, stew creatlv resources t ardship e thinking ,eomWork SPort ' PrObl . smanshlp 0 em SOlVing , ndnu ' other ott'/h.. merous 2004 ",. ~:!\t:'!........- ._.""..r.!'."",,"~,,",,"- - !jllanifl:iE1Jiillliillll~ lllCln@@lI111: Anah.,lm Public Utllllles- Anaheim High Transportation Academy. Canyon High School Calle!IUaS Municipal Water Dlstrlct- Moorpark High School. High School at Moorpark College Eastern Municipal Water D1strict- Chaparral/Temecula Valley High Schooi. Perrls High School. San Jacinto High School. West Volley High School Imper allrrigcltion Oistrlcl- India High School Inlanc Empire Ulilllles Agency- Chino Hills High School. Ayala High School Long lIeach Waler Deparlmenl- Long Beach Polytechnic High School Municipal Water District of Orange County & Mesa Consolidated Water District- Costa Mesa High School Rivers de County- La Sierra High School. Murrieta Volley High School City 01 San Fernando- San Fernando High School Three Valleys Municipal Water Dlstrict- Faith Lutheran High School. Glendora High School. Pomona HIgh School, San D mas HI\lh School. Diamond Bar High School. Garey High School. Nogales High School. Charter Oak High School Up pel San GClbriel Valley Municipal Waler Dislrlct- EI Monte High School. Gabrlelino High School. La Puenle High School, Los AI iOS High School Western Munk:ipal Water Distrlct- Norco High School Unsp<lnsored- Centennial High School. Corona i!.!ill:~IilI1ilkfil~Illl<l!Y Is a drinking waler reservoir owned and operated ty Metropolitan Water District. It can hold up to 44,000 acre -feet O'f water (one af=360.000 gallons). Because It holds future. drinking water. even thau\:'h the water will stili be treaied, no swimming, 'Nadlng or "body conbct' Is ollowed. The lake's' f shing ond camping a:::tivltles are operated, I)y leas<, agreement by tho Riverside C :Junty Parks and Open-Space District. \!i,~~!ll~iIDe~ l!ile@liilD\l'I'!firw~J, Friday, May 13. events are qualityi 19 rounds. Saturday, May 14, the boats run 90- minute enelurance races around a 2-kllometer course, using power frorr, solar panels and batteries. Sunday. May 15. the boats remc,ve the solar paneis and speed-race on a 200- meter course. T{'>:"j;-:\!Ti.!'J. L"<'&q :U~i1L"l'z:fllli~\!il':.!:~~ There is no required minimum or moxlmum number of team members. Teams have ranged in number from one to 30. Each team must have a faculty advisor. Seme teoms have several advisors. as well as the assistance :Jf team members' parents. ,.;.0''''~t: are built from Identical kits of marine-caliber wood provided ty Metropolitan. Single-seat boats are 16 feet long, and weigh about 50 pounds. ...-.-......;,.:.. i::~;ld1&:![ ~ltr:TI!))!:'llil~;t'('; Boats may use up to four solar collection panels. which are generally 4 feet square. although configurations differ. '. The maximum output aliowed from all panels is 320 watts. ',"'>1" ." . :..-.~ c:P,'~r~~ . :_'M~ " ",.:"' .. '-.- .-.- c"-__~ ._'.',' ~ ."" . , " ,.,,'". -," ..... ~. 1JiW@Hilllli~ ~<3ll\lufillemeilJt: Maximum weight allowed for boat and skipper is 451 ibs.; the minimum weight of the skipper is 132 ibs. Ballast-usually bags of gravel-may be added to bring the pilot's weight up to 132 Ibs. l'5alf~: Each skipper must pass a Red Cross swim test. Each boat is equipped with a safety cord attached to the pliot's life vest; should the cord be !=lisconnected while the motor Is running, the motor is automatically shut off. In addition, a safety boat and lifeguards hover nearby. lJl~UIltl(jjjjlfJ1f.: Metropolitan Water District assumes the costs of the Solar Cup workShOps. main event, administration and related costs totaling oppraxlmately $75,000. Participating Metropolitan member agencies support each team with $3,000 with which to equip their boat. and reiated expenses. ~"':(fAt~;i! (?i'JJ~) begins with sign- up in December. and includes a boat-building event and several workshops focusing on technical aspects such as drive trains, electrical systems. solar power collection and steering systems. Teams are also required to meet deadlines for submitting iliustrated reports on these systems. '- ,.' ::.'2,>:'..:~;[;' Each team Is required to present a visual display showing how solar power can be used localiy and/or globally to address a water probiem. .JANUARY 2006 m__~____M__e_t__r_D_~_[p)_~-@~-~-'jff@--~._m_._.__.. NEW CONSERVATION COMMITMENT As a resull of action by its Board of Directors, Metropolitan Water District will increase its financial commitment to conservation by as much as $5 million over the next five years and refocus its programs. "With this commitment, we're sending a strong message that Southern California plans to stay at the forefront of water conservation and is truly serious about encouraging everyone to use water as efficiently as possible," said Metropolitan board Chairman Wes Bannister. As part of a new five-year strategy developed in coordination with its 26 member public agencies, Metropolitan will increase incentives to local agencies for new high efficiency programs and devices from the current $154 for every acre-foot (326,000 gallons) of water conserved to $195 per acre-foot, up to 100 percent of the cost of a device. Metropolitan currently offers rebate packages for a variety of devices, including ultra-low-flush toilets and urinals; high-efficiency clothes washers, weather-sensitive irrigation c_ontroll~rs, waterbrooms, and cooling tower conductivity controllers. Customized incentive programs aiso are available to homeowners' associations for large landscapes and for industries that use water in processing or manufacturing. During 2005, Metropoiitan issued approximately 300,000 rebates for devices that are now saving 9,000 acre-feet a year in Southern California. conYnued on page 3 RECORD 38 TEAMS IN FOURTH SOLAR CUP STUDENTS BUILD, EQUIP BOATS FOR MAY 19.21 EVENT AT LAKE SKINNER A record 38 high school teams-totaling about 700 students-are participating in Metropolitan's 2006 Solar Cup program, up from 28 schools in 2005 and just eight in 2002. "Solar Cup began just four years ago with eight teams, and as the word spread among students and teachers, participation has skyrocketed each year," said Metropolitan board Chairman Wes Bannister. "I think it's such a huge success because the students not only apply their math, physics and engineering skills, they have a really great time. Equally important, by working together closely, they develop new skills, like teamwork and cooperation." Russ Donnelly, Metropolitan's education programs manager, said, "Metropolitan's Solar Cup program is the oniy high school-level solar boat competition in California, and the nation's largest at both high school and collegiate levels. By comparison, the 2005 intercollegiate solar boat competition had 19 participants." - (A compiete list of Soiar"Cup schools and their sponsors is at mwdh2o.com, under Press Releases and Education Programs.) continued on page 3 Metropolitan Waler Dis'lrict of Southern California. METROSPECTIVES www./1.WdIl2o.com .un. mfLJ!Gl'!~JL&rrB\Yn!!_ J!iJJii>Jl:pJtll'JffL . ~,;:;'l ~,p'- '" R" [""'" r EO i>:""~ .hr.", ~ -7 ..'~\.,J....., "t:'"1\ iC$; ';)'IJ'; :.1 ~.;. \ l'r ~...:,) u.__u..... _". _ _ _".... ;;...___h.... . As t~e new year gets under way, both federal and state lawmakers will be consid !ring water-related legislation. Congress remains in recess until early Febr lary, but the California Legislature is already in full swing, with the legisla:ive year beginning Jan. 4 and bringing with it continued attention from legi"lators and the Governor on flood protection, levees and the Bay-Detta. Some of the highlights of issues and bills that have emerged. eariy this :rear include: . Fo :us on California infrastructure - including levee improvements and water supply. The Governor's State-of-the-State address focused on his long-tnrm infra~tructure vision - which he envisions being implemented over the 'lex! 10 years. Specifically, this plan lays out more than $220 billion in infrastructure investments, of which $68 billion would be financed tlrough general obligation bonds. The Governor proposes that the Legislatura approve the entire 10-year plan as a single package; however, the bond,: would be put before the people of California over a series of elections n 2006 and 2010. . Prrtentlal water measurement and urban water management plan legislatior. . PIltentially major changes to the California Bay-Delta Authority. Various r>lviews of the California Bay-Delta Authority by the Little Hoover Commiss on, the Department of Finance and a private management consultinil firm have resulted in a series of recommendations for revamping the Autho rity. In December, the CBDA considered and supported key recommendations, including the establishment of an executive leadership council a the stat'9 and federal level, reassignment of CBDA staff to the Resource; Agency and development of legislation to support changes in CALFED (overnanee. Additionaliy, in late December, state, federal and stakeholder negotiators completelf a proposed Staternent of Principles to refocus and redirect the CALFED Environmental Restoration Program and other activities and to provid l financing for select actions for the nex! two years. Eighteen organizations, to date, have agreed to present the principles to their governin(. boards for approval. Debra C. Man, inter m CEO /GM of MetropolITan Water District, spoke on South- ern Calif, mia's wat"r supply reliability Dec. 8 at a Community Leaders Briefing in Orangl: hosted by Assemblyman Bob Huff (R-Diamond Bar). Joining Man afterwan s were (lelt) Bill Campbell, chairman of the Orange County Board of Supervis Jrs, and Wes Bannister, chairman of Metropolitan's board and a director represen ing the Municipal Water District of Orange County . 2 TRAVELING ART Artworks by 14 Southland secondary School students are being displayed on the labels of MWD water bottles; another 36 works by elementary school students are being showcased in Metropolitan's 2006 calendar. The artworks, which illustrate water appreciation and conservation messages, were selected in the annual "Water Is Life" poster contest for publiC and private schooi stildents, cosponsored by Metropolitan's member agencies and retail water agencies throughout the region. This month, the artworks became a traveling exhibit, vistting participating water agencies. They also can be downloaded from Metropolitan's Web site-www.mwdh2o.com. "Education Programs"--as screensavers. Thirteen of Metropolitan's mernber agencies and 16 retail water agencies participated in the contest in May, Water Awareness Month, acting as the first level of judging. From hundreds of entries submitted to them, 214 finalists were submitted to Metropolitan. ANAHEIM DIRECTOR SEATED Marcie L. Edwards, general manager of the Anaheim Public Utilities Department, has been seated as the city's representative on Metropolitan's board of directors. She replaces Thomas F. .Tait, who had served on the Metropolitan board since July 2004. Appointed to her city position in January 2001, Edwards oversees Anaheim's water and power utilities with a customer base exceeding 340,000 people and a service territory of about 50 square miles. She oversees the department's 350- member staff and $400 million capital budget. Prior to joining tbe city, Edwards served in a variety of management positions for the Los Angeles Departrnent of Water and Power for nearly 25 years. A California native, Edwards holds a bachelor's degree from the University of La Verne as well as a state-issued steam engineer's license, which allows her to operate any size electric generating facility in California. President oHhe California Municipal Utilities Association Board of Governors, Edwards is a past member of the governing board of the California independent System Operator. She served as interim chief executive officer of the California ISO during the summer of 2004 while a search was conducted for a permanent CEO and guided the state through seven all-time peak electricity usage periods without experiencing supply shortages that necessitated blackouts. NOW ON CABLE "The Pursuit of Balance," a two-part one-hour teievision show produced by MWD about the importance of California's Bay-Delta area and the competing interests to its long-term future, is now airing on cable television stations throughout the state. You can view the entire show on www.mwdh2o.comand click on the "Tap" icon. Complete press releases (on these and other topics) can be found at www.mwdh2o.com. -...:_. (':", .. .. For address changes and to receive Metrospectives bye-mail, message us at metrospectives@mwdh2o.com . ,,\ .. ~ .-n-.----C<<"-N~~Effl-VA.TION__~o~timJ.dfrdiri_p3g"-1---:---'n_____:'n_____n__:_n::____:____n_::_______ __nn_:~:_ _____:_____n__::n_n___n._ Through the board's action, Metropolitan will expand its rebate list to include high-efficiency toilets that save up to 14,000 gallons of water a year; high-efficiency urinals (20,000 gallons in .annual savings); waterless urinals (40,000 gallons annually); cooling tower controllers that conse lie up to 844,000 gallons annually; and connection less food steamers that save more than 80,000 gallons a year. "'-hese arH truly the next generation of water-saving devices," said Debra C. Man, Metropolitan interim chief executive officer and general manaller. "When it comes to saving water, we have led the way in developing and promoting new technologies that will ultimately help us save more' han 1.1 million acre-feet of drinking water a year by 2025." While maintaining Metropolitan's Innovative Conservation Program, which provides $250,000 in competitive grants every two years for resear:h into new water-saving devices, teChnOlogies and systems, the board also created an Enhanced Conservation Program. Tile enhanced conservation pilot program will award $4 million in competitive grants every other year to pilot and develop programs and improllements that maximize innovative water-saving devices and technologies. DJtailed information on Metropolitan's conservation and rebate programs can be found on the district's Web site, www.mwdh2o.com.and under the Rebates section of bewaterwise.com. FOUR1"H SOLAR CUP conffnued from page 1 Teims gathered Dec. 3 and 10 under big tents on the grounds of Three Valleys Municipal Water District in Claremont to tum kits of precut plywood pieces into 16-foot canoe-like boats. M"tropolitan provides the teams with identical boat kits, and loans them a fully equipped tool chest. Then, using $3,000 provided by local wlter utilities, government agencies and other sponsors, the teams spend the next three months outfitting their boats with steering and solar-p lwer systems of their own design. The Solar Gup event wili be held May 19-21 at Metropolitan's Lake Skinner reservoir near Temecula, open to the public free of charge. Th 3 first day is qualifying tests. On Saturday, the teams use battery-stored solar-generated electricity to run 200-meter sprint races. Sunday, the teams attach solar-collection panels to their boats for 90-minute endurance races around a 2-kilometer course. In the 200!; competition, Canyon High School of Anaheim took first place for the third consecutive year. Glendora High School placed second and Nogates High School, La Puente, placed third. La;t year's Solar Cup results, along with rules, photos, videos, and other material is posted, under "Education Programs," on Metropolitan's Web site, www.mwdh2o.com. . Th'lrB is no required number of students for a Solar Cup team; teams have ranged in size from three to 30; this year's Upland High Schaal team totals 52. Each team must have a teacher/advisor; some teams have several advisors, including participants' parents. A t3am of experienced SOlar-competition professors and selected students from California Polytechnic University, Pomona, reviews and grades' he students' reports, and also provides the technical inspections and support at the competition. .. ...u.u..__mn____ unun_..mm ._:___m..._nmum.._m.unmmu....um..u.-uu-..-mn.. u. ...mmu' .nW.W_w~mw.dh2o.~om.... MOJl&NG. fi'OISJll/JU:gD,f+iJO"f ~ACK.WARD. what the Department of Water Resources in its recent Bulletin . 160 called "the backbone system" - espeCially the State Water Project. At this point, what's needed is added flexibility in the way the state receives water supplies through the Bay-Delta. This would allow water to be pumped at times when tt's available, subject to strict environmental safeguards, thereby helping maintain the balance between water supply and environmental protection. That would be accomplished through the South Delta Improvements Program. In addition to providing more flexible pumping practices, tt would also install tidal gates that wouid improve conditions for fish and provide enhanced water quality for farmers. The improvements are aiready paid for from state water bond funds. We share the frustration of those who see the Delta fishery continue to struggle despite huge investments. Southern California is committed to continue to do the environmentally responSible thing, both through water pianning and through . substantial investment of time and resources into Bay-Delta ecosystem restoration programs. Conversely, we believe there are environmentally minded Californians who understand that disrupting a reliable water supply helps no one. This is no time to return to the days of. litigation or heavy-handed regulation. This should be solved in the laboratory and the field, not in the courtroom. Mr. Bakall is a Metropolitan director representing the Municipal Water District of Orange County. M!etro~[p)~cg~~\W~~ by Ergun Bakall Chairman, CALFED/Bay-Delta Oversight Subcommittee It has been nearly 25 years since Sunne McPeak, then a Supervisor of Contra Costa County and more recently a member of Governor Schwarzenegger's cabinet, called for "policy before plumbing" regarding the future of the San Francisco Bay/Sacramento-San Joaquin Delta. Since that time, Southern California has clearly taken this imperative seriously by completely revising our water management strategies (througll the regional Integrated Resources Pian) and by investi 19 heavily in the development of local water supply resources Conti luing this trend, the Metropolitan Water District board recently ,pproved a 25 percent boost In financiai incentives provided tor conservation, and expanded it to an array of cutting edge hig:l-efficiency models. The region is continuing and increasin~ its support for desalination and reclamation programs, b.oth of Wllich reduce dependence on the Bay-Delta. Despite events such as cutbacks in Colorado River supplies, or bone-cry conditions in the Southland, the region's diversified approach has not only averted rationing, but even allowed Southern California to build up storage reserves to to times the level that 3xisted in the 1990s. Whilll local resource investments are central to the I RP, we have alsc long nlcognized the need to maintain and improve We. Banll.star Chalnna 1 of the Bonrd Joseph Farker Vice Ch,lr Larry D. 'lick VlceCh<ir James N. Rez VlceChdlr Ted Orar,dsen V[ceChlir Heten, Z. Hansen " Secretay Anthony R. Fello'W' ;'Chairml n, Communications and . Leglslat on Commi1tee Debra M lIn Interim CEO/General Manager Tlmot~y C. Worhl' ~ Int8"rfm Group Manager, External Affairs Rob Hallwachs .0:, ;'~'.:~'.EcfitOr,ll1etrospecti"es ;',".".'.'" "'."J1.,-."".: . ~ ':';;;~on',*""-}Ifrl",,,...,~iA P.O. Box 54153 Los Angeles, CA 90054-0t 53 I FIRST-ClASS MAIL I I PRE-SORT I U. S. POSTAGE PAID i I LOS ANGelES, CA I i PERMI~NO.1197=-1 H'I I. We're making excellent progress toward our May 13-15 event at Lake Skinner, near Temecula. Our second technical workshop was held on Feb. 5. It was great to see so many familiar faces! The workshop kicked off with global water information related to the flew visual display requirement. Cal Poly Pomona, which is serving as our technical consultant, covered topics including batteriE's, ffoa;tation, steering and the technical report rubric. Feb 18 was the due date for the first technical report, "the soiar a,Tay report. We had 23 teams meet the deadline. The electrical report is due March 4. 'you 11 find the complete schedule of events and due dates posted at our Web site, www.mwdh20.com. Scroll down the right side to Education Programs, click on the apple icon to go to the Education home page. In the middle of that page you wiff see the Solar Cup logo; a click there and you'lf be transported to the Solar Cup We!b page. Make sure you check this page. frequentfy; we! update the "Frequentfy Asked Questions' section often. A goal of ours was to incorporate more water education and information into this year's program. One way of achieving this was to revamp the visual display guidelines. Thi~ year we have a theme, and the display itself is worth more {:.oints. The teams must apply solar technology to a local or global watE1r issue. (Tip: teams can consult their local water agency about local water issues.) Displays wiff be evaluated on Sat. MolY 14. There wiJI ,be no interview this year, so make your display self-ex,J/anatory and audience-friendly. The display is now worth 150 points. You probably noticed at the top of this page that Solar Cup has a jazzy n,aw logo. We received several designs from student partici~'ants, but chose one by Metropolitan graphic artist Erik Erath. We will use Erik's logo on banners, T-shirts and trophies, and wi./ incorporate the students' designs into the event, too. Julie lv'iJler, Solar Cup Project Manager The Name Game What's in a number that's really a name? A whole lot, judging by the entries in this year's Solar Cup. Solar Cup boats aren't allowed names. But teams are allowed to choose-rather than be assigned-their own identification numbers. That means the choices are infinitesimal. In fact, one school chose the symbol for infinity. Symbols are allowed, as well as numerals. So a few symbols have also been selected, possibly from the same book in which the Artist Formerly Known as Prince found his short-lived sign. Defending champion 'Canyon High, which in the two previous years has chosen the year of the event, 03 and 04, as their boat name, has nabbed 05 in hopes of continuing its winning streak. The High School at Moorpark College is challenging Canyon's rule, In part by selecting #1. "The reason ," said team advisor Judi Gould, is "Because we wantto be number one!" Gould points out that the #-sign is also equated with the game of tic tac toe, and reminds them that they're also in Solar Cup to have fun. La Sierra High School also is gunning for first place, choosing 01. Costa Mesa High went with 55. because of the song "I Can't Drive 55." The Gal State LA solar car team used to play that song because slower competitors could not go 55. CMH solar team advisor Steve Nelson's favorite race driver was Nigel Mansell, whose car number was 5 when he won several championships, and Nelson adds that "having two 5's is good luck." --Continued-- 200i5 Participants SCHOOL Anah 3im High-Transportation Aca,jemy Ayala High Schobl CanYJn High School CentElnnial High School Chap3rral High School Charter Oak High School Chine, Hills High Coste. Mesa High DiamJnd Bar High School EI Me nte High Faith Lutheran High School Gabrielino High School Gare', High School Glenclora Hi~lh School High School at Moorpark College Indio High School La Puente High School La Si,ma High Long Beach Polytechnic Los Altos Hi~lh School Moorpark HiUh School Murril~ta Valh~y High Noga es High School Norcc' High School Paloma Valley High Pome na High School San Dimas High School San f'emando High San Jacinto High School West Valley High School CONTACT . CITY BOAT NUMBER EMAIL Brett Schumm Anaheim schumm@yahoo.com XL Trent Munsey Chino Hills munsey@casusa.org 5 Kerry Langdale Anaheim klangdale@orangeusd.12.ca.us 05 Greg Schultz Corona mrfixit@bigvalley.net 11.3 D. Wooley Temecula jnllabs@speedband.com Brian Sherman Covina bsherman@cousd.k12.ca.us ~ Caesar Tran Chino Hills Ibcesar@hotmail.com 13 Steve Nelson Costa Mesa EdD323@aol.com 55 David Hong Diamond Bar dhong@walnutvalley.k12.ca.us 00 Steven Swanson EI Monte MazdaRX7@aol.com CU Mr. Nelson La Veme jnelson@lhslv.org 54 Evelyn Torres-Rangel San Gabriel ETroffesRan@aol GE Stewart Solomon Pomona Stewart.Sokomon@pusd.org Erminio Maganzini GI!3ndora kycbaskets@cs.com 07 Judi Gould Moorpark jgould@vcccd.net #1 Jeff Campbell Indio jeffreyc@dsusd.k12.ca.us ~2 Glen May La Puente Gmay@hlpusd.k12.ca.us 17 Linda Jirsa Riverside Iindajirsa@hotmail.com 01 Vinnie Delgado Long Beach vincon@ix.netcom.com 88 Robert Franz Hacienda Heights rfranz@hlpusd.k12.ca.us 11 Tim Hoag Moorpark timhoagie@aol.com CWJ Pete Matus Murrieta pmatus@murrieta.k12.ca.us 10 Ezekial Chavez La Puente.. ""';"-. Ezekiel20@aol.com 20 Challyn LeFever Norco /.:- K::ao!l96@'hotmail.com 06 . ;J'" .. 'r " Chuck MurphY..--M~ife~.. f'. :.- .,~.' .:':';'--'C~~I?h.y@pu.Q?d.Or9 09 Sonal Patel' . .Po!Jlo~~;;::, "" ;\..; i VSonal..p~tel~pu~d.org \ 61 Brian Elliott ',. -San:Dlmas!, '. ,t '. \ "I I;BnanElh@aol.com_' Dana Neill. . '; > San Fernanilb;' dbactelt@la'usd.k12.ca.tii....~ ;-70 " Peter Wong /. ':,.San.JachliC; :: . "--pwong3@i]i.'3r/~Om" ':<. 25". '. Gary Norga,n. >. ;:';'.'~'l:Jem.~I>'" gncirgan@h~metusd.k.1.i~ll,us/.~.>~1t~ .;) .,...../.... -'. The rJame Game--continued from pag~~~e- ....... . .' .' . ~ "./,/-. '.\ r....:<' :"li Faith Lutheran High School is right behind.them, with 54. ,'. ,".. . !i~.-'.' .....,. . Gabrielino High School liked the letlersGE; whichnotonly standJOr Giibrielino Eagles but are the well-known initials of the gi3nt corporation whose long-time motto'was"We Bring ~ocid Things To Life: '.' '. .\ {'- , ..... .\' . . .. ......,".. 1 ~ -. " .' . Los Alto> HS Academy of Engineering chose 11, because "number 11'has been olJr.~choOl;s entrY'number for all sorts of jifferent vehicles it has built and raced in sch_olasti.c competitions," a tea'ml member said; :'It's practically a tradition" . . ., . ," . ,. . . The stuclents on the Norco High School Solar Cup team ctiose' 06 because almost every f!'lam member is. currently a junior, graduating in 06. "A week later we realized there is on'esenior, who will graduate this year, on our team. but she said she is fine with 06-to everyone's relief!," said team 111~ll)bers Jordan Michles and Chris Long... ,.,' . Anaheim High Transportation Academy selected XL, an electronic engineering symbol for inductive reactance. Advisor 3rett Schumm told us, "This is an explanation of our team' to a tee. If I'm thecurrerii.. mY. students are the resistance. As ,I induce more energy they counter with an opposlte'reaction proportional to'mine', thus at times cancelin ~ out any net gain." '. ," He's probably not the first teacher to think that. If you have any questions, comments or concerns please contact ;rulie:MiII~r ," 11" "', -', Toll-free 866-95S0LAR 213-217-6738 jamiller@mwdfi2o,c'om ~www;mwdh2o.com . .wwW~Bewater,w,se.con ORDINANCE NO. 3~l ORDINANCE OF THE EAST VALLEY WATER DISTRICT SETTING COMPENSATION FOR THE BOARD OF DIRECTORS w ..... WHEREAS, the Board of Directors of the East Valley Water Jistrict ("the District") finds as follows: A. Pursuant to Ordinance No. 346 adopted by the Board of Directors of the District on February 27, 1990, each director is entitled to receive compensation in the amount of $100.00 for each day's service rendered on behalf of the District, not exceeding a total of ten (1.0) days in any calendar month. B. Pursuant to Water Code Section 20202, said compensation may be increased by an amount not to exceed five percent (5%) for each calendar year following the operative date of the last ,... adjustment. w C. The District has not made any adjustment in the amount of compensation paid to a director since the adoption of Ordinance No. 346 referenced above. THEREFORE, THE BOARD OF DIRECTORS of the District does hereby adopt and ordain as follows: 1. Each director of the District shall be entitled to receive compensation in the amount of $125.00 for each day's service rendered on behalf of the District, not exceeding a total of ten (10) days in any calendar' month, after the effective date of this Ordinance. .., Compensation shall be paid to a director only upon approval by the Board of Directors of the District of a statement 2. 1 - ~ Eubmitted by the director indicating the date and purpose of the day o:E service, which approval shall be reflected in the minutes of W t.he Board of the District. 3. This Ordinance shall take effect sixty (GO) days after adoption pursuant to Water Code Section 20204. Adopted this 22nd day of May , 2000. Ayes: Noes: Abstain: Directors: Goodon, Lightfoot, Negrete, Wilson None Director. Sturgeon ? '-k< . Directors 'W '=$/~ Secretary to the Board W I, Robert Martin, do hereby certify thet this IS a tru nd rrect copy of the record. - ROBERT MARTIN, Secretary To the Board East Valley Water District .., 2 RESOLUTION NO. 2005.36 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING POLICIES FOR ITS COMPENSATION, REIMBURSEMENT, AND ETHICS TRAINING WHEREAS, the Board of Directors of the East Valley Water District finds as follows: A. The East Valley Water District ("the District") is a county water district organized and operating pursuant to California Water Code Section 30000 et seq. B. The District is governed by an elected Board of Directors ("the Board") whose activities are subject to the requirements of California law, including but not limited to the "Local Gove=ent Sunshine Bill" ("AB 1234"), which .takes effect on January 1, 2006. C. The purpose of this resolution is to ensure compliance withAB 1234 and to establish policies with respectto (1) Board member compensation, (2) Board member reimbursement, and (3) j30ard member ethics training. NOW TIIEREFORE, BE IT RESOL YED BY TIIE BOARD OF DIRECTORS of the East Valley Water District as follows: Section 1. COMPENSATION. 1.1. Amount. The amount of Board member compensation by the District shall be determined in accordance with all applicable requirements of the California Water Code. Pursuant to said requirements, the Board adopted Ordinance No. 361 on May 22, 2000, which provides that each Board member of the District is entitled to receive compensation in the amount of$125.00 for each day's service rendered on behalf of the District, not exceeding a total often (10) days in any calendar month. 1.2. Dav's Service. 1.2.1. Meetings. F or purposes of determining eligibility for compensation of Board members pursuant to Ordinance No. 361, the term "day's service" is defmed as attendance or participation of a Board member, in person or by telephone, at a meeting with one or more other 1 parties for the performance of official duties on behalf ~fthe District. A "meeting" as used herein inc1udl~s, but is not limited to, the following: (a) Any occurrence that is listed in Government Code Section53232.l(a); (b) A regular, special;or emergency meeting of the Board; (c) A meeting of a standing, ad hoc, or advisory committee of the Board; (d) A meeting with the District's General Manager involving the operations of the District; (e) A meeting with the District's auditors, attorneys, or other consultants involving matters for which the consultants hiiVe been retained by the District; (f) A meeting of a local, state, or federal body with subject matter jurisdiction affecting the operations of the District; (g) A meeting with a local, state, or federal representative concerning matteI's involving the operations of the District; (h) A meeting or' organizations with interests in matters involving the functions and operationS of the District; (i) A conference, seminar, or organized educational activity involving matters related to the functions and operations of the- District; and G) All other occurrences for which the Board member has obtained prior approval from the Board to attend or participate on behalf of the District. 1.2.2. Dailv Limitation. If a Bpard member attends or participates in multiple meetings in a single day, the Board member shall only be eligible for compensation for one meeting on that day. 1.3. Procedure. To receive compensation for attendance or participation at approved meetings, a Board member shall submit to the District's General Manager a payment request for the calendar month by the first regular Board meeting of the following month, at which time the Board will consider approval of the payment request. 2 Section 2. REIMBURSEMENT. The District shall reimburse Board members for costs incurred related to attendance or participation at approved meetings as defined in Section I of this Resolution, as provided herein. 2.1. Elilrible EXDenses. Expenses eligible for reimbursement shall be limited to (1) registration or tuition costs, or other charges for participation at the meeting; (2) transportation to ,md from the meeting, including airfare, car rental, or mileage for use of a Board member's own automobile, and other miscellaneous transportation costs (shuttle, taxi, parking, etc.); (3) lodging at the single-room rate; and (4) reasonable costs of meals. 2.2. Budl!:et Limits. The maximum am01mt of District-paid expenses that each Board memb~r may annually incur without separate prior Board approval is $8,000 each fiscal year for the Board President and $7,000 each fiscal year for each of the other Board members. 2.3. Rates. 2.3.1. Registration. Tuition. andMeeting Charg:es. The District reimbursement rate for registration or tuition costs, or other charges for participation at a meeting, shall be the actual amount incurred, no! to exceed th~ maximum rate published by the conference or activity sponsor for timely registration after applying all applicable deductions for any available discounts. 2.3.2. TransDortation. (a) Members ofth~ Board must use government and group rates offered by a provider of transportation services for travel when available. If such rates are not available, the District reimbursement rate for Board member transportation shall be the actual amount incurred, not to exceed $100.00 per day's service (except for airfare, which shall not exceed the cost of round- trip coach airfare). (b) The District reimbursement rate for mileage by use of a Board member's own vehicle shall be calculated on the basis of total miles driven for District purposes at the rate specified in the Internal Revenue Code in effect at the time of the vehicle usage. (c) The District reimbursement rate for vehicle parking by a Board member shall be the actual amount inC\llTed. " .J 2.3.3. Lodlrinl!:. Members of the Board mustuse government andgroup rates offered by a provider of lodging services when available.' If the lodging is in connection with an accepted confi:rence or organized educational activity, lodging costs must not exceed the maximum group rate published by the conference or activity sponsor, provided that lodging at the group rate is available to the member of the Board at the time of booking. If a government or group rate is not available, the District reimbursement rate for Board member lodging shall be the actual amount incurred, not to exceed the rate for comparable lodging. 2.3.4. Meals. The District reimbursement rate for Board member meals shall be the actual amount incurred, not to exceed $100.00 per day's service. 2.3.5. Other. District reimbursement of all other actual and necessary expenses incwred by a Board member shall be computed using the applicable Internal Revenue Service rates forre:imbursement as established in Publication 463, or any successor publication. All expenses that do not fall within this reimbursement policy or the Internal Revenue Service reimbursable rates, as provided above, shall be approved by the Board in a public meeting before the expense is incurred. 2.4. Ineligible Exnenses. Board members shall not be.eligible for District reiinbui:sement , . of any expenses incurred by any person traveling or attending a meeting as a guest of the Board member. No Board member shall be eligible for District reimbursement of any expenses for personal services not related to District business. 2.5. Exnense Forms. The District shall provide expense report forms to be filed by the members of the Board forreimbursement for actual and necessary expenses incurred on behalf of the District in the performance of official duties. The expense reports shall document that expenses meet the policy reflected in this Resolution for expenditure of public resources. Board members shall submit to the District's General Manager expense reports for the calendar month by the first regular Board meeting of the following month, and the reports shall be accompanied by the receipts documenting each expense. At the first regular Board meeting of each month, the Board will consider approval of District reimbursement of Board member expenses incurred dmingthe previous month. All documents related to reimbursa~le District expenditures are public records subject to 4 disclosure under the California Public Records Act. 2.6. Renort. Board members shall provide brief reports on meetings attended at the expense of the District at the next regular meeting of the Board. Section 3. ETHICS TRAINING. 3.1. Requirement. 3.1.1. Service Prior To 2006. Each local agency official in District service as of Janua.ry 1,2006, except for Board members whose term of office ends before January 1,2007, must receive training in ethics laws before January 1,2007. Thereafter, each local agency official must receive such training at least once every two years. 3.1.2. Service On or After 2006. Each local agency official who commences service with tl1e District on or after January 1, 2006, must receive training in ethics laws no later than one year :from the first day of service with the District. Thereafter, each local agency official must receive such training at least once every two years. 3.2. Annlication. 3.2.1. Local Agencv Official. As used in Section 3.1 of this Resolu.tion, the t<;rm "local agency official" means all of the following: (a) All Board members; and (b) All executive staff of the District. 3.2.2. Ethics Laws. As used in Section 3.1 of this Resolution, the phrase "ethics laws" includes, but is not limited to, the following: : (a) Laws relating to personal fmancial gain by public servants, including, but not limited to, laws prohibiting bribery and conflict-of-interest laws; (b) Laws relating to claiming prerequisites of office, including, but not limitl~d to, gift and travel restrictions, prohibitions against the use of public resources for personal or political purposes, prohibitions against gifts. of public funds, mass mailing restrictions, and prohibitions against acceptance of free or discounted transportation by transportation companies; 5 ( c) Government transparency laws, including, but not limited to, financial interest disclosure requirements and open government laws; and (d) Laws relating to fair processes, including, but not limited to, cornmon law bias prohibitions, due process requirements, incompatible offices, competitive bidding requirements for public contracts, and disqualification from participating in decisions affecting family members. 3.3 District Resl'onsibilities. 3.3 .1. Records. The District shall maintainrecords indicating (a) the dates that local agency officials satisfied the requirements of Section 3 of this Resolution and (b) the entity that provided the training. The District shall maintain these records for at least five years after local agency officials receive the training. These records are public records subject to disclosure under the California Public Records Act. 3.3.2. Notice. The District is required to provide information on training available to meet the requirements of Section 3' of this Resolution to its local agency officials at least once annually. Section 4. REVIEW OF RESOLUTION ON ANNUAL BASIS. Each year the Board shall review this resol)ltion to determine its effectiveness and the necessity for its continued operation. The District's General Manager shall report to the Board on the operation of this resolution, and make any recommendations deemed appropriate, including proposals to amend the resolution. Upon conclusion of its review, the Board may take any action it deems appropriate concerning this resolution. Nothing herein shall preclude the Board from taking action on the resolution at times other than upon conclusion of the annual review. Section 5. SEVERABILITY. If any provision ofthis resolution, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this resolution which can be given effect without the invalid provision or application, and to this end the provisions of1:.t'1is resolution are declared to be severable. 6 Section 6. EFFECTIVE DATE. The provisions of this resolution shall become effective on Januaxy 1, 2006. <\dopt(:d this 13th day of December, 2005. AYES: NOES: ABSTAIN: ABSENT: Directors: Goodin, lightfoot, Negrete, Sturgeon, Wilson None None None =KCC.~' ~ President, Board of Directors ATTEST: s~m 7 BRUNICK. McELHANEY &. BECKETT RENE 5. ABRAHAM STEVE" K. BECHETT WILl-lAI1 J. BRUNICK RAYMO ~D 1". DOLEN STEVE~, M. KENNEDY l.ELANt. P. McEI.HANEY PROFESSIONAL LAW CORPORATION 1839 COM MER CENTER WEST SAN BERNARDINO. CALIFORNIA 92408 MAILING ADDRESS: POST OFFICE BOX 6425 SAN BEiRNARDINO. CALIFORNIA 92412 215 CAJON STREET P. O. BOX 1320 REOLAN05, CALIFORNIA 92373 TELEPHONE:. 19091 793-0818 01 CQUNSII!:I.. CHARL::5 A. PECKHAM PLEASE:. REFER TO TELEPHONE: 19091 aBg~8301 FAX: 19091 36B-laS9 E-MAI L: bbmb@bbmblsw.com June 7, 2006 TO: Board of Directors EAST V ALLEY WATER DISTRICT FROM: Jill: Steven M. Kennedy, General Counsel Directors Compensation The purpose of this memorandum is to provide the District with information concerning the legal requirements relating to the above-referenced matter. i'n this regard, Water Code Section 30507 provides in pertinent part as follows: "Each director shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of six days in any calendar. month, together with any expenses incurred in the performance of his or her duties required or authorized by the board." (Emphasis added.) However, notwithstanding the above, Water Code Section 20201 provides that the Board may, by ordinance, provide compensation to its members in an amount not to exceed $100 per day for each day's attendance at meetings of the Board, or for each day's service rendered as a member of the Board by request of the Board. Additionally, Water Code Section 20202 allows the Board to increase its compensation above this amount in a sum not to exceed five percent (5%) for each calendar year following the operative date of the last adjustment. However, a director may not be compensated for more than a total often (10) days in any calendar month. Water Code Section 20202. Pursuant to these requirements, the Board adopted Ordinance No. 361 on May 22, 2000, which provides that each director of the District is entitled to receive compensation in the amount of $125.00 for each day's service rendered on behalf of the District, not exceeding a total often (10) days i.n any calendar month. In accordance with the provisions of Assembly Bi111234, the Board also adopted Resolution 2005.36 which establishes a written policy specifying the types of occasions that constitute the performance of official duties for which a director may receive compensation from the District. . EVWD Board of Directors June 7, 2006 P.lge Two Therefore, if the Board wishes to increase the amount of compensation paid to a director, the maximum amount allowable would be $125 per day of service plus 5% for each calendar year following the operative date of the last adjustment [i.e., July 21,2000 (60 days after adoption of Ordinance No. 361 on May 22, 2000)] for each coinpenSable day of service (the maximum allowable being lO days per calendar month). Any action to increase the amount ofthe Board's compensation may occur only by adoption of an ordinance following a public hearing. Water Code Sections 20201, 20202-20203. Notice of the bearing must be published in a newspaper of general circulation once a week for two successive weeks prior to the hearing. Water Code Section 20203; Government Code Section 6066. After adoption, the ordinance would not become effective until sixty (60) days after its passage and is subject to repeal by referendum. Water Code Sections 20204-20207. (c: Robert E. Martin, EVWD General Manager Directors' Compensation San Bernardino Valley Water Conservation District $l"O/meeting 50/< increase each year No Benefit Package ReImbursement for expenses for out of town copferep.ces (gas, food, mileage and lodging) No annual cap on expenses (Board Member only, does not include spouse or companion) Sail Bernardino Valley Municipal Water $273/meeting (IO/month) ACW A Medical and Dental Package Reimbursement for expenses for out of town conferences (gas, food, mileage and lodging) Nc annual cap on expenses (Board Member only, does not include spouse or companion) Western Municipal Water District $2~0.67/meeting Hfalth, Dental and Vision Package ($962.33/month cap for benefits) $13,000 Life Insurance (reduces every year) Directors are considered employees of the District (on payroll) NCI annual cap on expenses (Board Member only, does not include spouse or companion) Yucaipa Valley Water $400/month No Benefit package Rdmbursement for mileage and direct expenses No annual cap on expenses (Board Member only, does not include spouse or companion) City of San Bernardino Water $300/year Medical, Dental and Vision Package ($910/month for benefits) $50,000 Life Insurance and $50,000 AD&D No annual cap on expenses (Board Member only, does not include spouse or companion) \\ est Valley Water District $110/ Board meeting, special board meeting or" emergency board meeting $: 5/Committee meeting that is three (3) hours or less, including travel time to and from the meeting $J 10/Committee meeting that is greater than three (3) hours, including travel time to and from the meeting A list of approved attendance organization meetings and designated representative attendance meetings is provided. The Board President shall attend all outside meetings pertaining to the water industry that is to be in the best interests or of benefit to the District. R ~imbursement for mileage and direct expenses ACW A Medical and Dental (mandatory) and Vision (mandatory) Package, the District pays 100% of premium for the Director, spouse, and dependent children No annual cap on expenses (Board Member only, does not include spouse or companion) Be it OJ-dained by the Board of Directors of the West Valley Water District as follows: ORDINANCE NO. 71 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE WEST VALLEY WATER DISTRICT ESTABLISHING POLICIES FOR COMPENSATION OF DIRECTORS ARTICLE 100. MEETINGS 101. REGULAR BOARD MEETINGS. The regular meeting of the Board of Directors of West Valley Water District ("Board of Directors") shall be held at 3:00 p.m. on the first and third Thursday of each month. Business shall be conducted in accordance with Division 12, Section 30000 of the Water Code and g 54954 of the Government Code of the State of Califomia and all other codes pertaining thereto, as well as any proceedings adopted by the Board of Directors not inconsistent therewith. 102. SPECIAL BOARD MEETINGS. Special meetings of the Board of Directors may be called in accordance with Government Code g 54956 of the State of Califomia. 103. EMERGENCY MEETINGS. Emergency meetings of the Board of Directors may be called in accordance with Government code g 54956.5 of the State of California. 104. COMMITTEE MEETINGS. To assist the Board of Directors in its deliberations for establishing policies of West Valley Water District ("District"), it is deemed beneficial to have standing committees or ad hoc committees of the Board of Directors made up of not more than two (2) members of the Board, who shall develop recommendations to be considered by the Board of Directors for establishing policy by working independently or with staff. The committee chairperson shall be appointed by the President of the Board. 105. OUTSIDE MEETINGS. Members of the Board of Directors (singularly, "Director" and collectively, "Directors") may attend outside meetings to educate and inform such Directors regarding issues affecting the District and the water industry and to make others aware of the activities concerning the District. Periodically the Board of .Directors may ask a Director to represent the District at an outside meeting or perform another duty for the District. For purposes of this Ordinance, the term "Outside Meeting(s)" shall mean any meeting, activity, conference, seminar, workshop, facility tour and other like or similar events, except for the meetings listed in Sections 101 through 104. Except as provided in Section 106, a Director may attend any Outside Meeting. However, the District shall compensate a Director for only those Outside Meetings approved in Section 203. 1 Rev.02/04/04 106. PRESIDENT OF THE BOARD. It is in the best interests of the District for the President of the Board of Directors to periodically meet with District staff and represent the District at Outside Meetings with other elected officials of other public agencies, as well as other functions pertaining to the District or the water industry. The President is authorized to attend all Outside Meetings pertaining to the water industry that is in the good faith belief of the President of the Board of Directors to be in the best interests or of benefit to the District. 2 Rev.02/04/04 ARTICLE 200. COMPENSATION Each Director shall be compensated for attending District related meetings and functions a1 follows: 201. BOARD MEETINGS. Each Director shall receive One Hundred Ten Dollars (SlIO.OO) for attending a regular board meeting of the Board of Directors, a special board IT eeting of the Board of Directors, an emergency meeting of the Board of Directors or an adjourned regular, emergency or special meeting of the Board of Directors. 202. COMMITTEE MEETINGS. In the event a committee is established pursuant to Section 104, each Director appointed to such committee ("Committee Member") shall receive one ofthe following: (a) If the committee meeting is three (3) hours or less, including travel time to and from such meeting, the Committee Member shall receive Fifty-five dollars ($55.00) or (b) If the committee meeting is greater than three (3) hours, including travel time to and from such committee meeting, the Committee Member shall receive One hundred ten dollars ($110.00). For purposes of this Ordinance, "travel time" is computed to and from the Director's main residence or place of employment, whichever is applicable. 203. OUTSIDE MEETINGS. Directors shall be compensated for Outside Meetings as follows: (a) Attached hereto as Schedule "A" is a list of Outside Meetings any Director may attend without further approval of the Board of Directors. If a Director attends an Outside Meeting listed on Schedule "A" such Director shall be compensated in accordance with subsection (d) below. (b) Attached hereto as Schedule "B" is a list of Outside Meetings the Board of Directors desires designated Directors to attend. Each Outside Meeting listed on Schedule "B" sets forth a primary representative and alternate representative. Only the primary representative shall be compensated for attending the Outside Meeting in accordance with subsection (d) below unless the primary representative cannot attend, in which case the alternate representative shall be compensated for attending the Outside Meeting in accordance with subsection (d) below. (c) Except as set forth in Section 204, .the District shall not compensate a Director for attending an outside Meeting .(other than pursuant to subsections (a) and (b) above) unless such attendance is approved by the Board of Directors. It is the o ~ Rev.02/04/04 preference of the Board of Directors that Directors obtain approval of the Board of Directors at a duly called meeting prior to the attendance of the Director at an Outside Meeting. The Board of Directors recognizes that certain Outside Meetings shall arise which shall not afford its Directors sufficient time to receive prior approval of the Board of Directors. In such event, the Director may request compensation at the next scheduled meeting of the Board of Directors. In the event the Board of Director-s approves attendance at the Outside Meeting, the Director shall be compensated in accordance with subsection (d) below. (d) In the event a Director attends an Outside Meeting pursuant to subsections (a) or (b), or the Board of Directors grants authorization for a Director to attend an Outside Meeting either before or after the Outside Meeting, pursuant to subsection (c) above, the Director shall receive one of the following: (i) If one or more Outside. Meetings total three (3) hours or less during any single calendar day, including travel to and from such Outside Meetings, the Director shall receive Fifty-five dollars ($55.00) or (ii) If one or more Outside Meetings is greater than three (3) hours during any single calendar day, including travel time to and from such Outside Meetings, the Director shall receive One hundred ten dollars ($1 IO.OO). In addition to the foregoing, .to accommodate a reasonable travel time to' and from authorized Outside Meetings, a Director may be compensated for up to one (I) day travel, the day before an Outside Meeting is to occur and up to one (I) day after the Outside Meeting is concluded, provided that the Outside Meeting is greater than sixty (60) miles from the District's headquarters. 204. PRESIDENT OF THE BOARD. (a) The President shall receive Fifty-five dollars ($55.00) for attending one or more Outside Meetings during a single calendar day (whether or not it is approved pursuant to Section 203), lasting three (3) hours or less, including travel time to and from such Outside Meetings. (b) The President shall receive One hundred ten dollars ($110.00) for attending one or more Outside Meetings during any single calendar day (whether or not it is approved pursuant to Section 203) lasting longer than three (3) hours, including travel time to and from such Outside Meetings. 205. COMPENSATION LIMITATIONS. Section 20202 of Division 10 of the California Water Code states: "In any ordinance adopted pursuant to this chapter to increase the amount of compensation which may be received by members of the governing board of a water 4 Rev.02/04/04 district above the amount ofGne hundred dollars ($100.00) per day, the increase may not exceed an amount equal to 5 percent, for eac~ calendar year following the operative date of the last adjustment, of the compensation which is received when the ordinance is adopted. No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month." There shall be no compensation for attending meetings or performing other duties for the District on the same day as Board of Directors meetings. 5 Rev.02/04/04 ARTICLE 300. EXPENSES The District shall reimburse each Director for expenses while on District business as outlin,ed below. Each Director shall be responsible for turning in appropriate District related expenses, including receipts or other documentation, to the General Manager's office. It is to each Director's benefit, as well as that of the District, that all expenses be turned in to the General Manager's office in a timely manner for proper accounting. 301. LODGING, MEALS, AND OTHER EXPENSES. The District shall reimburse each Director for expenses while on District business, including, but not limited to, payment of registration fees for conferences, workshops, seminars, lodging, meals, and other related expenses while attending or traveling to/from District related functions. The following restrictions shall apply to District paid expenses: (a) District paid air travel shall he the lowest applicable fare at the time of booking based on the itinerary of the Director. If a Director elects voluntarily to remain at a location longer than necessary to discharge his or her duties, and the longer stay results in a saving on airfare, the District shall offset any savings against any increased expenses incurred in the longer stay. (b) In the event a Director is required to rent a vehicle to attend an authorized Outside Meeting, the District shall reimburse the Director for the cost .of such rental vehicle, provided that the cost shall not exceed the cost of a mid-sized vehicle, regularly charged by such rental company for same day rentals. Any contractual agreements between the District and car rental agencies shall be considered first for booking of rental vehicles. (c) Whenever appropriate, lodging and meals will be prepaid by the District or paid for by District staff. When making prepayment of reservations for travel, meals, lodging or other related expenses, it may be beneficial to the District to include payment for spouses. Each Director shall reimburse the District for any prepayment of costs for his/her spouse except as otherwise set forth in this Ordinance. Directors are authorized to incur expenses arising out of and in connection with the meetings set forth in Sections 201, 202, 203 (a) and 203 (b) and Outside Meetings approved pursuant to Section 203 ( c), without the further approval of the Board of Directors, provided that: the expenditures do not exceed the amount set aside for each Director in the budget approved by the Board of Directors, from time to time. Each Director shall be specifically allocated an amount equal to twenty percent (20%) of the total amount budgeted for Directors' expenses. All 6 Rev.02/04/04 (.ther expenses must be approved by the Board of Directors prior to reimbursement by the District. 302. MILEAGE. Whenever a Director uses his/her personal vehicle for transportation on District business or to/from District related functions; the District shall leimburse the Director the same rate per mile as approved by the Internal Revenue Service at the time the mileage is incurred. No mileage reimbursement shall be made for attending Board of Directors meetings held at the District headquarters. 303. INSURANCE. In California, automobile insurance coverage follows the vehicle. Therefore, when a Director attends functions on behalf of the District in their personal vehicles, 'heir insurance is primary. If a claim exceeds the limits of a Director's personal insurance then the District's liability insurance shall pick up the excess. Therefore, each Director should make sure his/her insurance ~over their District activities. 304. SUBMITTAL OF EXPENSE REPORTS. Each Director, including the President, shall submit a report of all expenses, including but not limited to, compensation requested pursuant to Article 300, to the General Manager in a handwritten form approved by the Policy Committee or on a prepared form approved by the Policy Committee. Each submittal shall be signed by the Director. If the General Manager does not observe any discrepancies, he shall approve the report for payment. If the General Manager observes a discrepancy, he shall bring it to the attention of the Director as soon as possible. In the event the discrepancy cannot be resolved, the matter shall be presented to the Policy Committee for resolution.' 7 Rev.02/04/04 ARTICLE 400. BENEFITS 401. HEALTH PLAN. All Directors are eligible to participate in the District's group health plan, along with their spouses and dependent children. If a Director chooses not to participate in the health plan he/she must notify the General Manager in writing of his or her dection not to participate. (a) The District's health plan is administered by the Association of California Water Agencies. (b) The District shall pay 100% of the premium for the Director, spouse and dependent children. 402. BENEFITS AFTER RETIREMENT OR DEATH. A retired Director and ,pouse (See Article 2, Section 217 of Personllel Policies), or spouse of a deceased Director or retiree may continue his/her medical, dental, and vision insurance at the District's expense on the basis of the following: The Director is a minimum of fifty (50) years of age with a minimum of ten (10) years of continuous service. If the spouse of a deceased Director, or retiree, remarries and becomes eligibk for health benefits under his/her new spouse's health plan, all District benefits shall be terminated: . 403. VISION CARE PLAN. Coverage is mandatory for all Directors, their spouse and dependent children. (a) The Vision Service Plan is administered by the Association of California Water Agencies. (b) The District shall pay 100% of the premium, including Director, spouse and dependent children. 404. DENTAL PLAN. Coverage is mandatory for all Directors, their spouse and dependent children. (a) The Delta Dental Plan is administered by the Association of California Water Agencies. (b) The District shall pay 100% of the premium for the Director, spouse, and dependent children. 8 Rev.02/04/04 405. RETIREMENT PLAN. Only the Directors elected or appointed prior to July 1, 1 ~94 an: eligible to participate in the District's retirement plan. (a) The retirement plan is administered by the California Public Employees Retirement system. (b) The District shall pay all costs, which include the District's and the eligible Director's share. THIS ORDINANCE IS EFFECTIVE 'THE 4TH DAY OF APRIL 2004. ADOPTED, SIGNED AND APPROVED THIS 5th DAY OF FEBRUARY 2004. Alan Dyer, President ATTEST: - Anthony W. Araiza, Secretary 9 _ . Rev.02/04/04 SCHEDULE "A" ORGANIZATION ACW A Spring Conference ACW A Fall Conference ACW A Mini Conference ACW A Legislative Symposium and Day at the Capitol California Special Districts Association. California Special Districts Association Government Affairs Day Water Education Foundation Tours Rev.02/04/04 DESIGNATED REPRESENTATIVE Any Board Member Any Board Member Any Board Member Any Board Member Any Board Member Any Board Member Any Board Member 10 SCHEDULE "B" DESIGNATED !:'RGANIZA TION REPRESENTATIVE ALTERNATE I,CWAlJPlA Earl Tillman, Jr. Anthony W. Araiza ACW A - Region 9 Alan Dyer Anthony W. Araiza j,WWA Anthony W. Araiza Leon Long CA.Water Awareness Campaign Betty Gosney Jackie Cox Chino Basin Watermaster Anthony-W. Araiza Leon Long Inland Counties Water Association Leon Long/Betty Getz Anthony W. Araiza ]nland Empire Employers Patricia Lundin Anthony W. Araiza Advisory Council :"ytle Creek Water Conserv. Assoc. Anthony W. Araiza Leon Long 'Jational Water Resources Assoc. Alan Dyer Betty Gosney Nationwide Public'Projects Coalition Ira B. Pace .Alan Dyer Rialto Business & Professional Women Betty Getz Alan Dyer Rialto Rotary Anthony W. Araiza Betty Gosney Rialto Basin Management Board Anthony W. Araiza Leon Long San Bernardino Co. Special Districts Earl Tillman, Jr. Anthony W. Araiza SBVMWD Advisory Commission . Alan Dyer Don Olinger SBVMWD Board Meeting Anthony W. Araiza Leon Long/Alan Dyer Special Districts Workers' Compo Alan Dyer Anthony W. Araiza Upper Santa Ana Water Res. Assoc. Anthony W. Araiza Leon Long 11 Rev.02/04/04 !)RGANIZATION - (Continued) 'N ater Resources Institute '.v estern Coalition of Arid States West End Water Development, JPA DESIGNATED REPRESENTATIVE ALTERNATE Anthony W. Araiza Leon Long! Alan Dyer Betty Gosney Anthony W. Araiza! Leon Long Alan Dyer Anthony W. Araiza 12 Rev.02/04/04 CERTIFICATION STATE OF CALIFORNIA ) ) ss COUNTY OF SAN BERNARDINO ) I, ANTHONY W. ARAIZA, Secretary of the Board of Directors of THE WEST SAN BERNARDINO COUNTY WATER DISTRICT, DO HEREBY CERTIFY that the foregoing ORDD'IANCE NO.71 was duly adopted by the Board of Directors of said District at a Regular meeting thereof, held the 6th day of September 2001, a full quorum present and acting through, by the following vote to wit: AYES: NOES:' ABSENT: DIRECTORS: DIRECTORS: DIRECTORS: ROE~ER,. SMITH, DYER, TILLMAN, RADEN NONE NONE DATI~ Anthony W. Araiza, Secretary, West San Bernardino County Water District, and, the Board of Directors thereof. 13 Rev.02/04/04 CIl <Xl R 10 0 ~ 0 0> 10 0 <Xl <Xl W "": ~ 0 ~ 0 Ll'! "! 0 M M CIl ~ ,,; ~ m N ui .... ~ 0 ui ui Z '" '" ~ ~ .... .... ~ 0> ~ <D <D W ..... ..... <Xl '" , <D <D ZCl. N .... .... OX CIlW ::! 0 0 0 0 0 0 0 0 0 0 8 0 ~ 0 0 0 0 0 0 ~ 0 0 ~ 0 (/) ui ui 0 ui 0 0 10 0 ui 10 0 0 W ..... 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'-'.~ Date: ' Ofganizatidn Date " , .'.,Organization Date Organization Date Organization Date Organization Date: Organization Date Organization WRI WRI EVWD WRI EVWD Evwb , , .':;EVW.o .-1.- .-. "Description ,PO C()mmittee Meetinq Description Director Search Committee Description Description Description Description Description Description TOTAL # OF MEETINGS --.19- @125.00 each $ 1250.00 Personal Auto: M~es x' . Parking Fees Total Lod9in92, Meals & Other. (Details on Back) per mile_ $ $ $ Total Director's Expenses $ 36.00 Signed lV6-v-...ll /Q A ..~e... " ~ ./ Date of Board Approval Mav 23. 2006 Total Director's Meetings & Expenses $ Less any Advance Payments $ TOTAL DUE DIRECTOR $ 1286.00 1286.00 Lodoinas: (Receipts attached) Dale: Function Attended $ Da':e: Function Attended $ Da':e: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ SUB TOTAL $ Meals: (Receipts attached) Dete: 15 Function Attended Special Districts $ 36.00 Dete: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ SUB TOTAL $ 36.00 Other: (Receipts attached) Date: Function Attended $ Date: Function Attended $ D3te: Function Attended $ SUB TOTAL $ TOTAL LODGINGS, MEALS AND OTHER $ 36.00 (Enter this total on the front of form) DIRECTOR: sturgeon Board \'vIeetin~Js: 23 Conferences and Other Meetinas Dat,~: 1 Organization Kay's Cafe EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT MONTH OF: June 2006 Description Mtq. wi Don and Hiqhland Datl~: 1, 3, 8 Organization SBve Description School Datl~: 3 Organization Highland Library Description Dedication Datl~: 8 - 11 Organization ACWA Description Conference Date:~ Description Budget Workshop Description Seven Oaks Tour Description Sign ACWA Documents ~t1P~.l~~~@:Yervice Cornrni tteE '~c.jj!ption posDC4I>ntest Cerern9ny CU...er IstrICl::' DescriRtion Luncheon , - Date: 21 Date: Date': Date: Date: Organization MWD Description Solar Cup Organization Description Organization Description Organization Description Organization Description TOTAL # OF MEETINGS 10 @125.00each_$ 1,250.00 Personal Auto: Miles x .445 Parking Fees Total Lo(~, Meals & Other: (Details on BaCK) per mile_ $ $ $ Total Director's Expenses $ Signed Date of E,oard Approval ct! Lc--C---- June 13, 2006 Total Director's Meetings & Expenses $ Less any Advance Payments $ TOTAL DUE DIRECTOR $ 1,250.00 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR: !tIlL 50"J MONTH OF: I1A V t!7 c,. Board Meeti 19S: ...6'h; s IJ/~ '; .,.-; JH ConferenceB and Other Meetinas Date:_*-_Organization S B C H fA) 0 Description T/l C f1. fS Date:--,~/s- _Organization &VNO Date:s''7 - ~-II~ Organization A,- uJ A Description 11M <<JI 5...... ;r ""uel . Description '3f' 0;"<; CD..~ Date: :"/17 u ~A {(}R-~ Description B.. ".,1 }'/ -I"j Description /1..tl-u H, I r ~J.J . Description 1-1 d.r wi 9..... Hd-lIae-J Description ~i~(l ""1i. /, ~l!1 ~ "'..-~ .~4.~ .T!'t. ~ ~ #~f~~. N ~~_"C' u.2!'9.WtI0.F1 '.::-'~ \; :: 11C:. ;! . . Organization <; e C k IvO ,\ ;l!; 19Jes%iPtio.n ill Vat..er' " l?,.Sl"~gJp..ll9JJ" Description Description ~,...,) .< 09 ., l,.,..,# ~ Sl rw ~ c: (", Date: - Organization Date: ... Organization Date: ... Organization Date:_ Organization Date: - Organization Description Description Description TOTAL # OF MEETING:S /1. @125.00 each_ $ 12..stJ. &'10 per mile_ $ $ $ oersonal .~uto: Miles x .405 Parking Fees Cotal Lod~ Meals & Other: (Details on Back) Total Director's Expenses $ 7"72.3 tb ./; J ~. d / I /;.1 b/ Qlgne ,J /..' /.t//f ___ .:../"....-(,.. - Date of E,oard ,1;.pproval Total Director's Meetings & Expenses $ 1.() <f-2, 3{; Less any Advance Payments $ TOTAL DUE DIRECTOR $ -:20+:2 .3c., Lodoinas: (Receipts attached) Date:~~ Function Attended Date:_ Function Attended Da1e: Function Attended Date:_ Function Attended Da':e: Function Attended Da':e: Function Attended Date:_ Function Attended (Receipts attached) D"te:_ Function Attended D".te: Function Attended . D~lte: Function Attended Date: Function Attended Date: Date:_ Date: Meals: Date: Date:_ Date: Date: Date: Date: Other: Date: Date: Date: I1-culll- (I)., !e,&lc.~ $ 7Q2. .~("_ $ $ $ $ $ $ $ $ $ Function Attended Function Attended Function Attended SUB TOTAL $ $ $ $ $ $ $ $ $ $ $ Function Attended Function Attended Function Attended Function Attended Function Attended Function Attended (Receipts attached) Function Attended Function Attended Function Attended SUB TOTAL $ lCfZ.. 3G $ $ $ SUB TOTAL $ TOTAL LODGINGS, MEALS AND OTHER $ '(c1'230 (Enter this total on the front of form) ...I < o CD LO . LO I- l.ON.,..r---..,..OOOOOOO Cl) 0 ......com,....co,.... ... I- _. U .... enO ~~CO~ .... ::. 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'-,~_:.c... ___ ....""-...Jtf\,..~......... -...:..t:::..... ...4,.......:-.. -.:..... ...... .:~~ ,n,/'-4 7' .;;..,. " ". ," <- " " /;01-1-- .\. " " r \1 " '4~f."..,JJ.t.,I,~- If) . .' "'".''''' :~ h~ 'Q.~~ ~~~~~ ~'\ ~ ~ ~~&-~ ~~~~~~, ~o-a~~,~~o- ~ COb~~~~&> ,~ ~l\Jlcd~ ~~~ ~~~~~ ~ tt1' ~Vv ~lDk.~- ~ Q.,u,"",-SL" ~ ~ ~~~t'CY"'~ ~'~ - ' ~n~Cl~1 \JJ tlw ~9-- ~~,',", -. .(\ --=-=1 _,,~I .,. Y< Association of the San Bernardino County Special Districts June 19, 2006 Membership Meeting ~--'!'"' '1\ -' ,'; ,./. ./~""" West Valley Water District is hosting the June Membership Meeting at EI Rancho Verde Royal Vista Country Club in Rialto. The social hour will begin at 6 p.m. with a call to order at 6:45 p.m. A sit down dinner will be served. Menu: Northern Halibut with rice New York Steak with baked potato - Dinner roll, coffee, tea, Dessert: Ice Cream Sundae Cost: $35 Program: Tom Crowley, Assistant Manager for West Valley Water District "New Development, Water Quality I Perchlorate Clean Up, and Source of New Supply" RSVP to: Peggy Asche by June 9, 2006 by email to peQQv@wvwd.ora or Fax 909875-7284 Mail checks to ASBCSD 5822 Date Ave., Rialto, CA 92377 District/Associate Attendees: Entree: ~EMINDER: There is a $2 surcharge per person for reservations made after the deadline date and coming to the dinner meeting without having made reservations. Yau will also be billed for the dinner if cancellation is not received PRIOR to the deadline date. Justine Hendricksen From: Diana Araiza [dmaraiza@adelphia.net] lient: Monday, May 22,200610:51 AM 1"0: Anthony "Butch" Araiza Bubject: Program for ASBCSD June 19th meeting This will be the program for the June 19th ASBCSD Monday night meeting. Program: Tom Crowley, Assistant Manager for West Valley Water District UN ~w Development, Water Quality I Perchlorate Clean Up; and Source of New Supply" Oil na Araiza. Administrative Sccrehu.y As!.ociatiOL'l orthe San Be-rllanlino Co .mty Special Districts 58: 2 Date Ave. Ri. Ito. CA 92377 l)()(' 874-5125 l)()~' 518-6682 Cell C I',.., !""{\"". Page 1 of 1 DIRECTOR jVC EAST VALLEY WATER DISTRICT D1REC R'S FEES AND EXPENSE REPORT MONTH OF: m/1y Board Meetings: Conferences and Other Meetinas Date J Organization //1 U,,/l-i ; Date !Z- Organization E. U .,(.-1.1, 0. Dat~U. Organization /;": i j u.J. () Date,,2!'t- Organization E U.uJ. 0 Datef3U" OrganizatiorE: OJ )), {J. " Date'S I orga[lizatio~ II W.O. ,':,,:, .~~ ~~~.:,: ~~. . ;~; ~~.</. Or~nlZatiotl* 'ii,', .~i-' ;.):,\:~~~t "k':;.~' 1',',.\ ^. /\ .",' "r\'" M~ ., ~~:t .,-,~allljl' ~;~ ~ .. :'}, ';;.:' ...~ :;../~j~:';- Date Date Date;> Organiz Date: Organization Date: Organization Date: Organization Date: Organization Date: Organization Date: Organization TOTAL # OF MEETINGS Personal c..uto: Description /!J(,@,/ t.UAY.t /3(.i JJl~( Description Description I ,/1 c?rL tV I S'6 t/} ~f'<<.//)r fc>'T ~r::::!: Description:.!.?, ,7 /4A M'7 fCk" wd-< De"riPti,";1k.d~ il~ ~ L!2~' / - 1; Description , t:: t '-', U-'LC Description " ,., \, Description i 3 <' 'i!! i Description, Y ," ' . 1,* ':'k i: 'c,'/:; ~ 1'; J^ Desc;ription Description Description Description Description Description 7 9rl '5 0~ @125.00each_$ Miles x .445 Parking Fees per mile_ $ $ J /3 /3 Total Lod ~ Meals & Other: (Details on Back) 75 75 Total Director's Expenses $ ~ ~ lotam"'olo',Meet"g,&E,pe",es .$'3 8',75 Signed ~t', y ~ Less any Advance Payments $ , Date of Bi)ard Jl,pproval TOTAL DUE DIRECTOR $888,75 Drreclors Fees and Exoense R€oort.doc DIRECTOR: Board MI~etings: EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT " ;t-j1r;4 5/2:3 MONTH OF: );tctq I Conferences and Other MeetinQs Date:~fZ- Organization EV/,{//) Date: S;3 S/Ih Date: Date: .5"/2<. Date: S-/J{J Date: Date: D t .j, ae:~ 1'9' 1J(~< Date:_ Date: Date:_ Date:_ Date: Date Date: Personal Auto: ~I #.A,z:15 A"~L~( ~4#~ ~.4; .~71-Y &~crdL~4~ ;J~' ~ult4 ~ Description 4PUL~ ..L'l.u;~~ ~2e7/. Description Description Organization (j4 if JJi'J,J Description Organization [ttd) Organization EI/il' P Description Description Organization E~/u/l) Organization :v~: '> ~~r \>,;~' "',1 .', oitJ~n~~iofi; "t;: (;'" Jd't"~~0:},'~,J/ ,';;' ~a!;ganiz~ti~ ~:l!':jj;; \~~~{" _7 W~~\ ~~~~~:: ~aniza1icin ".'F ~::':!}lii ;.' _-<1:"1'5/, ;1- Organization ~g:*;~i"1:0 ,- '~I~ \4,;\', ili\n ",:'~'i~", \j<:W ,0_ &,'~' ;1 . If;: J:~i<f,;};:: 0lffj;~~' ~\';J,:yfP Description :" ". ,d~$~ri ptibn A'i] ..; '^'\ :',t~~,. JJ'lescription .~ c""~ .,." ,," , :j:)~ K" ;~~, Del)crjption ~!("<"'-; c,/ , 1/" ., ,; ""H'^"'"' Organization Description Organization Description Organization Description Organization Description Organization Description @125.00 each_ $ 750. tJt> TOTAL # OF MEETINGS {, Miles x .445 Parking Fees per mile_ $ $ $ Total Lod~ Meals & Other: (Details on Back) Total Director's Expenses Signed ~ '4{;w' Date of Board Approval ~ - /3 ~ Total Director's Meetings & Expenses $ Less any Advance Payments $ TOTAL DUE DIRECTOR $ n""~'n'~ ""t'" "'" "'"........"". R"nf'rtnn.- $ ff ~ IY /' 7St? oC j7' 7.FC>,t'"(J